Monthly Update September 2015

2015-september-header

Last month was once again a month driven by market volatility. This means: plenty of buying opportunities!
But first I want to list my income and expenses. After the expensive July, I’m back on track to show a steady high savings rate! This doesn’t mean I denied the beauty of life – I just refused to choose the expensive ones. For example on one weekend in September we went hiking to the top of the nearly 8000 ft (2400 m) Swiss mountain Niesen. It was beautiful – and you know what? It only costs us a few liters of gasoline. Enjoying life and saving at the same time is the key to a sustainable high savings rate.

(assuming €:$ 1:1.2 currency exchange rate )

Income

Day Job Paycheck $4304
Dividend Income $186

Total Income $4490

Expense

Total Expense $1449

Saved Net Income 68%

 

68% saved this month! This is the second highest saving rate this year (after January).
In the following months I see quite some unusual expenses coming (new brakes and monthly loan payment for the new car), but we’ll see!

 

Purchases

Stock Units Price Date Cost
TPVG 100 $11.13 2015-09-14 $1113.00
RDS.B 37 $47.69 2015-09-22 $1764.53
AMGN 10 $137.73 2015-09-25 $1688.96
MAIN 64 $26.39 2015-09-28 $1688.96
KMI 50 $27.69 2015-09-28 $1384.50

 

I’m following all of my holdings if they fall below my predefined target prices, mostly 10% below my last purchase price. This month, nearly all holdings fell into the buying zone, but not at the same time.
I had to choose between a great variety of stock names. In the end I only added one new holding to my portfolio: AMGEN. The bluechip version of a biotech company with an attractive yield (comparing to GILEAD) and a fair valuation at 137.73. I had a hard time deciding between GILEAD and AMGEN but decided to add a new name to the list.

The energy sector also continues to give opportunities all over – OKE, KMI, BP, BBL, RDS.B, HP. But I choose to add to KMI this time. OKE was below my target price too, but unfortunately I had no money left.
The industrial sector is giving another good entry valuations in DOV, MMM, ETN, UTX, EMR, CAT, PH, DE and CMI. I’m especially interested in ETN, but I had no reserves left. Hopefully the market continues to decline and give me more time to deploy my money at these exceptional prices.

 

Sells

100 shares of ZIOP
 

I thought – let’s add a growth stock to my portfolio – but what do you do if this stock gains 70% in under a month? It really shows to me that the dividend investment strategy is the way to go for me. I couldn’t let the opportunity pass to sell the stock at a much greater price. Maybe I add it again, but I won’t include it here in my portfolio because I consider this as stock trading not investing.

 

Dividends

MAIN $12.79
BP $29.75
HP $23.38
ESV $27.00
RDS-B $31.02
GILD $9.14
NOV $17.60
STAG $4.89
TPVG $30.60
Total $186.16

$186 in collected dividends! National Oilwell Varco and Triple Point Venture Growth paid their first dividends to me and I’m more than happy to take it from them! For the record – I mistakenly included the TPVG dividend last month, but it was paid in September! The correct dividend amount is reflected in the following bar charts:

 

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15 thoughts on “Monthly Update September 2015

  • October 5, 2015 at 12:14 am
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    Your monthly savings rate is fantastic. If you can maintain a 68% monthly savings rate, the skies the limit for your portfolio. Congrats.

    Reply
    • October 6, 2015 at 11:09 pm
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      Thanks for stopping by Investment Hunting!
      Yes, anything over 60% is really good for me. Hopefully I can maintain this as long as possible.
      Thanks for your support!

      Cheers, DivRider

      Reply
  • October 5, 2015 at 10:17 am
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    Keep it up DivRider. It’s wonderful to do these reports every month. Hope to hear more posts from you.

    Thanks for sharing and great job bud.

    Reply
    • October 6, 2015 at 11:11 pm
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      Thanks for your support Dividend Hustler! I will bring more posts in the future 🙂

      Cheers, DivRider

      Reply
  • October 7, 2015 at 8:13 am
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    Impressive savings rate divrider, I hope to achieve that rate once I’m moved out and such. I found your blog off divhut, you have great posts!

    Nice add with Amgen, the bio-tech sector has been hit hard in the past/recent week. I’m looking into adding a few more as I only have 2-3 in my portfolio currently.

    Reply
  • October 7, 2015 at 10:48 am
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    Hi Bryce,
    thanks for stopping by! With your commitment, I see no obstacle in maintaining a high saving rate after moving out!

    I really like AMGEN with a 32.4% payout ratio and a constant EPS growth over the last years. Add nearly no debt to the mix and you have a perfect DGI stock (at least for me). Even though AMGEN isn’t really a bargain with a P/E of about 17, but I really like the estimates: http://www.4-traders.com/AMGEN-INC-4847/financials/

    And management confirmed an estimate double digit EPS growth until 2018:
    Bank Of America Merrill Lynch Global Healthcare Conference Presentation (slide 5)

    I think GILEAD and AMGEN are a very nice addition to every DGI portfolio, even though they’re missing the long needed dividend history of a dividend aristocrat.

    Cheers,
    DivRider

    Reply
  • October 7, 2015 at 10:26 pm
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    Always nice seeing those dividends roll in. Looks like a nice list of high yielding stocks. A little too aggressive for my taste but watch out long term for dividend cuts. There were some decent pick ups for the month too. AMGN looks interesting and the high yielding energy plays too. Thanks for sharing. Keep that dividend compounding.

    Reply
    • October 8, 2015 at 10:45 pm
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      DH, thanks for stopping by!
      Yes, I like it a little bit more spicy and sometimes this leads to a loss too. This is a risk, but we’ll see.
      The portfolio is still young and will grow up over time. My plan is to transition slowly into lower yielding stocks to gain some traction in the beginning. The bigger the portfolio, the calmer it will be.

      Thanks for your comment!
      DivRider

      Reply
  • October 8, 2015 at 9:57 pm
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    Div Rider,
    Nice savings rate? 68% is tough to beat. Your dividend income also looks very appealing. Keep up the good work!
    D4s

    Reply
    • October 8, 2015 at 11:14 pm
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      Thanks for stopping by & commenting Div4son!
      Yes, I’m right on track and hope to continue to save as much as I can. The snowball must grow! And I want it to grow as fast as I can in the beginning.

      Cheers and good luck to you!
      DivRider

      Reply
  • October 9, 2015 at 2:01 am
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    Wow 68% saving rate. That’s Translate to 8 years to financial freedom. It’s not too far especially you’ve already gotten a head start. Even if you continue to work, supplement income from dividend will help tremendously.

    Reply
    • October 11, 2015 at 9:24 pm
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      Hi Vivianne,

      thanks for stopping by and commenting!
      And you’re right! I hope to get $1500 in dividend payments per month in 9 years. This really sounds like a crazy long time, that’s why I’m focusing on the smaller milestones. I want to achieve a monthly dividend payment of $500 end of 2017. Right now I’m getting an forward average of $262 per month (52% of goal).
      Thanks for your motivation!

      Cheers,
      DivRider

      Reply
  • October 10, 2015 at 12:26 am
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    Fantastic savings rate, that’ll go along way when it comes to using saved money for buying dividend stocks. Very solid dividend income for month of September.

    Reply
    • October 11, 2015 at 9:27 pm
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      Tawcan,
      thanks for your visit!
      Yes, that’s exactly my motivation to save where I can (without loosing quality of living). Every saved dollar will work for me and will make a big difference in the years to come.

      Cheers,
      DivRider

      Reply

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