October 2016 – Financial Overview

pumpkinAnother month, another step closer to financial independence. In October our investment rate was according to the plan, adding nearly EUR 2,000 to our portfolio via share purchases. We’re in the middle of the Q3 reporting season and the results so far quite mixed with both positive and negative surprises. Overall the S&P 500 closed slightly lower this month, but due to the stronger dollar our portfolio had some small gains in euro. Let’s see the details!

Stocks

Company Weight  Purchase value EUR   Current value EUR   Value Change EUR 
Target 7.32% € 2,469.70 € 2,503.83 € 34.13
Unilever 6.14% € 2,150.15 € 2,099.90 -€ 50.25
AT&T 5.39% € 1,522.47 € 1,842.85 € 320.38
Cummins 5.10% € 1,416.54 € 1,746.17 € 329.63
ABN Amro 4.73% € 1,441.53 € 1,618.93 € 177.40
Ameriprise 4.71% € 1,654.00 € 1,610.02 -€ 43.98
Sanofi 4.15% € 1,457.28 € 1,419.20 -€ 38.08
IBM 4.09% € 1,331.98 € 1,399.73 € 67.75
Cisco Systems 4.08% € 1,325.61 € 1,397.09 € 71.48
ADM 4.06% € 1,269.44 € 1,388.84 € 119.40
Emerson 4.05% € 1,462.93 € 1,384.70 -€ 78.23
Valero 3.94% € 1,239.50 € 1,348.82 € 109.32
Western Digital 3.89% € 1,055.47 € 1,330.60 € 275.13
Royal Dutch Shell A 3.32% € 1,068.50 € 1,135.50 € 67.00
Phillips 66 3.24% € 1,067.69 € 1,108.61 € 40.92
HCP 3.19% € 976.87 € 1,091.76 € 114.88
AES 3.13% € 899.00 € 1,071.95 € 172.95
Qualcomm 2.74% € 609.75 € 938.80 € 329.05
CF Industries 2.56% € 1,046.51 € 874.68 -€ 171.83
Banco Santander 2.54% € 1,292.79 € 868.38 -€ 424.41
Kinder Morgan 2.18% € 468.00 € 744.26 € 276.26
Apple 2.12% € 804.60 € 723.84 -€ 80.76
Prospect Capital 2.10% € 567.00 € 718.58 € 151.58
Lockheed Martin 1.97% € 409.98 € 673.17 € 263.18
YUM Brands 1.84% € 547.36 € 628.63 € 81.27
NextEra Energy 1.70% € 519.30 € 582.88 € 63.58
EXXON Mobil 1.55% € 511.84 € 531.18 € 19.34
Colgate Palmolive 1.52% € 504.24 € 519.93 € 15.69
K+S AG 1.35% € 586.25 € 462.50 -€ 123.75
VISA 1.32% € 445.44 € 450.87 € 5.43
Total € 32,121.72 € 34,216.19 € 2,094.46

Two purchases were made in October:

  • Unilever – Comparing to the earlier holding this purchase was significant. Versus the September 2.57% now the company represents 6.14% of the Dirty Thirty Portfolio. The last few weeks were not too good for the share price, dipping over 10%. I have used this opportunity. There is absolutely no guarantee that the price will rise from here, but I believe it is a good long term buy at anywhere below EUR 40.
  • Ameriprise – Here I have also bought the dip, doubling my stake after the sell off that has happened after the not too good Q3 earning release. For me the company still looks solid with a low dividend payout ratio and this is exactly what I am looking for. Because of this reason I have doubled my stake.

There have been two dividend increases announced this month that impact the portfolio. Visa, which is actually the only company that I do not hold for its current dividend has announced a 17.8% dividend increase. Considering the low dividend yield and the small percentage this company represents in the Dirty Thirty portfolio it won’t make me rich, but the number looks good.

The other company is AT&T, which has announced its usual 1c (equals 2%) increase, which will be effective from 1st February. This is the kind of yearly dividend increasing pace I’m expecting from the company in the foreseeable future, but considering the relatively high dividend yield I am fine with it.

Bonds

No change here, my only holding is still the PowerShares Emerging Markets Sovereign Debt Portfolio ETF (PCY). The current value is only EUR 946.08, but based on my early retirement plan I am slowly planning to add some more holding in the next couple of month.

Real estate: EUR 13,000

Cash: EUR 10,000

Total: EUR 58,162 (vs EUR 55,946 in September

2016-10Pie chart of the assets 

Overview of the Road to One Million

2016-10total

Still far from the first milestone of EUR 100,000, but I’m only expecting to reach it in about two years anyway. The point is the slow but steady growth at the beginning which could hopefully turn into an exponential increase over the years.

How did October end for you? Have you made some extra purchases to your portfolio? Feel free to share your views and ideas 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 early retirement.

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10 Comments

  1. Doug November 2, 2016
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  3. Team CF November 7, 2016
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