The first quarter of the year is already gone. I’m always looking forward to review the quarterly finances, as this is the time when I check the dividend income. One of the most rewarding thing about dividend investing is that I can see the increasing amount of dividends being paid to me quarter by quarter. In addition, since I started my journey towards financial independence in the beginning of 2016, I was even more interested to see how much progress I made over the last year. Spoiler alert: things are going pretty well! 🙂
Changes in the Portfolio
First of all let’s have a look at the portfolio changes. I have already wrote a post suggesting that European stocks are cheaper than their US counterparts. In light of this, I have added 50 shares of the Vanguard FTSE Developed Europe ex UK ETF (VERX). By this, I have made a diversified purchase into 413 European stocks.
The other addition to the portfolio was a few extra shares of Target (TGT). This stock has fallen around 25% this year and I believe the market is being way too harsh with the company. It is indeed true that the US retail sector has seen better times in the past, but if you look at the 4.3% dividend yield of the company (with only 50% dividend payout ratio), the 13.5 forward P/E and take the fact that a few months ago they have announced an extra $5 billion share repurchase program, I believe the current share price is very attractive.
I was actually thinking about buying more TGT, but I did not want to have too much exposure into a single stock. Diversification is important and I try to keep it in mind during my portfolio building strategy.
If you are interested in my current portfolio, please visit the dedicated portfolio page.
Portfolio Fun Facts
If I disregard the dividends received, plus the extra purchases of this month, there was no significant change in the portfolio value. The ratio between the stocks with price increases and price decreases was nearly 50-50%.
The 3 best performing stocks of my portfolio in March were Western Digital, Banco Santander and Unilever. 2 out of 3 are European companies. In addition all my European holdings made it to the top 10. Is it a beginning of a pattern? Time will tell.
The 3 worst performing stocks were CF Industries, Prospect Capital and Target. I’m really hoping that Target will find a support around the recent levels.
2017 Q1 Dividend Income
This is the part I was excited about the most, and it didn’t disappoint. Look at this nice chart:
This quarter the portfolio has generated EUR 357.68 dividend income. As you can see, it’s a nice and steady rise quarter by quarter. In addition, comparing to 2016 Q1, the amount is over 3.6 times higher! The dividend elves are really doing their bests! 🙂
I think this chart clearly shows that dividend investing can be rewarding from day 1. Don’t get discouraged by the initial small income. Over the time these will all add up into a nice passive income that eventually will be the base of financial independence.
Cash and Real Estate
This section is still pretty boring, nevertheless I really hope I can announce some news on the real estate part during the next few months. Our cash balance is EUR 10,339 and the EUR 13k garage still generates EUR 70 income per month.
The Road to One Million
Finally let’s end this overview with the most important chart: Where we are on the road to one million?
The total portfolio value is EUR 76,272. The great series is not broken: still no negative month is reported. We’re slowly but steadily getting closer to the first important milestone of EUR 100,000. Will it be reached this year? Stay tuned and find it out!
How was your March? Did you make any purchase that you would like to share? Are there any readers out there who just started their financial journey? Please share your story in the comments!
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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.