May 2017 Financial Overview

It’s finally summertime and it’s time to review how did we do in May. I was very excited about this month because big amount of cash was coming in, in the form of bonus and holiday allowance. At the same time the euro is getting stronger and stronger, which is bad news for the current value of our investments in USD, but also means that we can make new purchases at a better exchange rate. See the details below!

Cash

I start with this category as this has the biggest change vs the previous month. In the Netherlands everyone is entitled to a holiday allowance which equals 8% of the annual salary. In addition, both Mrs. Roadrunner and I got our annual bonuses from our employers. These two sources has resulted in a big increase of our cash reserves, which now amounts to EUR 29,629. Yippee!!

No, we won’t spend it on pina coladas on the Bahamas, but it is waiting to get invested in a rental real estate. The remaining funds will be covered from an increased mortgage on our house. The approval of this mortgage increase is still being processed.

Related post: Hunting for an Investment Mortgage in the Netherlands

Changes in the Portfolio

Getting extra money is always nice, but now it only sits on a saving account which has a stunning 0.2% interest. This is quite boring, so let’s see what extra purchases I made to my portfolio.

  • Purchase of 5 shares of IBM
  • Purchase of 20 shares of Brinker International
  • Purchase of 20 shares of VERX

IBM and Brinker International were also among my purchases of April. Both (especially Brinker) were falling further in May so I used this opportunity to make some additions at even cheaper levels.

All of the above purchases were on the list of my May 2017 investment ideas. I will keep on publishing these ideas around the middle of each months so keep tuned!

Portfolio Fun Facts

The 3 best performing stocks of my portfolio in May were:

  1. Yum! Brands
  2. Qualcomm
  3. Apple

Unfortunately YUM is one of my smallest holdings so it didn’t make a big difference in the overall portfolio value.

QCOM seems like has found a strong support around $52.50 (this has also hold in early February) and is going up since. So far my purchase of last month seems to be a good timed one. The dividend yield is still 3.9% at current levels, while the yield on my average purchase price is 4.4% which is really great.

Apple is showing a great performance for a year now and the price is around all time high levels. Time will tell where the price will go in the near future. I personally would be happy for a correction in which case I could add more shares to my portfolio.

My 3 worst performing stocks were:

  1. Prospect Capital
  2. Brinker International
  3. Archer Daniels Midland

PSEC had a really bad May, but I don’t really mind as it has fallen down to levels when I can get 2 extra shares per month via their dividend reinvestment plan. From this month onward the dividend snowball will finally start rolling as my shares were finally transferred to my new broker who supports it.

I honestly don’t see the reason behind the big sell off in EAT. At the moment what the numbers show me is that this is a quite solid company with safe dividend yield and additional returns to shareholders via repurchases of own shares. Until it remains like this, I am not worried. Instead, as I said I have purchased some extra shares.

ADM is having some difficult times now, but it still provides safe dividends. Nothing to worry about, but I would not add extra shares to my portfolio unless the share price falls a bit further.

Dividend Increases

Only two companies have increased their dividends, but both by double digits. Apple has announced a 10.5% and Phillips 66 a 11.1% increase. From my side I don’t have to do anything, just sit and wait for the extra money to arrive.

 

The Road to One Million

The extra bonus and holiday allowance has made a big boost to the portfolio value. Look at the chart below:

Portfolio Value May17

The exact value is EUR 96,322 which means that we are getting really close to the first milestone of EUR 100,000! This is an excellent result and way over my expectation.

In addition the dividend income is also showing significant progress. I only publish our dividend income on a quarterly basis, but I can tell that in April and May already more dividends were received than during Q2 2016 in total. And this is only the second year of our journey to one million!

 

How was your May, dear readers? What do you think about my purchases of this month? Please share your thoughts at 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.

 

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4 Comments

  1. Mr. Robot June 6, 2017
    • Roadrunner June 6, 2017
  2. Divnomics June 6, 2017
    • Roadrunner June 6, 2017

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