June 2017 Financial Overview

June-2017-financial-overview

June is over and it is not only the end of a month, but also the end of a quarter and the end of the first half year. If you follow us for a longer time, you already know that this will be a more detailed overview with quarterly dividend overview and net worth update. Did we have another record dividend income? Has the portfolio value crossed EUR 100k? Find it all out below!

New Purchases in June

As the real estate investing project is still in the pipeline, we didn’t make too much extra purchases in June. If you read the previous posts this month, none of the new purchases will come as a surprise:

  • I have purchased 35 shares of Kinder Morgan. I have already mentioned the company in the article about June 2017 investment ideas. I’m quite positive about this stock, and reading a bit into the last earnings call transcript, it further affirms my opinion. Reading things like: “we currently believe the best avenue for returning value, is by an increased and well covered dividend, and we expect to announce our revised dividend guidance for 2018 later this year” and “we continue to make good progress on them, and on our goal of strengthening our balance sheet and thereby allowing us to return substantial value to our shareholders, through some combination of dividend increases, share repurchases, additional attractive growth projects, our further debt reduction” are reassuring for me.

On the top of this, Richard Kinder himself has also purchased KMI shares in the value of $9 million. Still, since February this year, the share price has been continuously falling. Now that it seems to find support in the $18.5-19.5 zone, plus the dividend yield increased again over 2.6%, I decided to jump in.

Together with this new purchase, I currently own 90 KMI shares, but I believe this number will increase soon.

2017 Q2 Dividend Income

I was really excited to calculate the final figure. In May I already knew that this is gonna be big (at least for me), because the amount of April and May divided income has already exceeded the total of Q2 2016. When I summarized everything after the end of June, I saw the following:

dividend 2017Q2

The total amount is EUR 480.83, which is not just far the best quarter since I started investing seriously, but also more than double than the amount of 2016 Q2. My June dividend income with EUR 257.63 was already more than the whole quarterly figure a year ago. I compare this to the year ago figure, because some of my European holdings do not pay dividends on a quarterly basis and their annual payment falls to Q2.

One of my financial goals for 2017 was to receive EUR 1,600 in dividends over the year. Now I’m over 50% of this goal, therefore everything goes according to the plan!

Portfolio Fun Facts

The 3 best performing stocks in my portfolio were:

  1. Valero Energy
  2. Phillips 66
  3. VF Corporation

The two refiner stocks had a really good month. VLO was rising 9.74%, while PSX 8.65%. This looks great, but it’s mainly due to the fact that they had a bad May and now they went back to the top of their earlier range. If you look at their YTD chart, it is much less exciting. Let’s hope though that it’s not just a one step back, one step forward game that they’re playing.

VFC at the same time is on its new high this year. So far it looks like a well timed purchase back in February. I just wish the share price hadn’t recovered this fast since, as now I only have a very small holding of VFC.

The 3 worst performing stocks in my portfolio were:

  1. Apple
  2. Target
  3. Sanofi

The technology sector did not have a great month in general and I also felt that Apple was overbought over $150. I kind of wish that the fall of the share price would continue, as around $120 I would definitely add some more shares to my portfolio. In June AAPL has lost 5.72% of its value.

Poor Target (down by 5.19%) had to be in this list again. Amazon’s Whole Foods deal really didn’t help the retailers to stand up from the floor. On the contrary… At the same time my opinion about the stock is still unchanged. I believe a very-very bad scenario is already priced in. Currently faithful investors (or hopeless believers?) are rewarded with a 4.7% dividend yield.

Sanofi (-5%) is on the list not because of an individual bad story. European stocks has been generally hit because of the stronger euro. This has bad effect not only on European exporters but also on my portfolio as a weaker USD is a strong headwind to my euro denominated results.

Dividend Increase

This month was quite boring as only one company in my portfolio has announced dividend increase. This was actually Target! It was not a huge increase (only 3.33%) but still an increase. In addition the dividends of the company are still well covered by the earnings.

The Road to One Million

Now let’s see where we are on the road to one million!

The final figure is EUR 96,085. This does not only mean that we could not cross the EUR 100k threshold, but it’s also EUR 237 lower than in May. This is mainly due to a small, temporary reduction of the cash reserves. Both Mrs. Roadrunner and I had business trips in June and we are still waiting for the refunds of the expenses. In addition, the further increase of the EUR/USD exchange rate did not help either.

I am not worried at all and I’m pretty sure we will leave EUR 100k behind us within the next couple of months.

Net Worth

Even though our investments and savings are still below EUR 100k, our net worth is really over my expectation. I do this calculation on a semi annual basis. We started the year with EUR 135,076 and by the end of June this number has reached EUR 200,795. Let’s see the details:

 AssetsLiabilities 
HouseEUR 420,000EUR 320,790Mortgage
Shares & BondsEUR 54,062
Rental GarageEUR 14,000
CashEUR 28,024
CarEUR 5,500
TotalEUR 521,586EUR 320,790Total
NET WORTHEUR 200,795

The big increase is mainly caused by the value increase of our house. In our area the prices are rapidly increasing. Comparing to last year’s value of EUR 385k it currently worth EUR 420k which is a 9% increase in a year. This amount is a certified one by an official valuer. We had to get an official valuation report for our mortgage increase (in order to finance the purchase of an investment property). This process seems to be in a final stage now.

The other part of the increase was caused by the holiday allowance and company bonuses that both Mrs. Roadrunner and I got in May.

 

So that’s it folks; this is where we are at the end of June. Overall I’m quite happy about the results, even though the value of investments and savings have not increased. I particularly like the pace of the dividend income increase.

We are still in the beginning of this financial journey, but after each review like this I see the future more bright.

How about you? Have you made some new purchases to your portfolio? What do you think about Kinder Morgan? It seems to be a hated stock among dividend investors who have burned themselves during the dividend cut last year. Will this sentiment change any time soon…?

 

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Disclaimer: This post or any other information on the site is not intended to be and does not constitute financial advice or any other advice. I am solely sharing my idea, plan and progress on financial independence and early retirement.

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16 Comments

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