Q3 2019 Portfolio Review

The third quarter ended and it’s time to review my portfolio again.

The market dropped in August but quickly recovered in September. Same as last quarter. I took some opportunities to increase my stock market exposure. I don’t disclose my speculative portfolio, but have to mention it here, because I sold out of one of my biggest gold position at the end of August. This provides me with plenty of new dry powder for my DGI portfolio.

And like last quarter, we were on a little surf trip to France and northern Spain again. Nothing beats those end-of-summer waves. Little DivRider junior enjoyed the beach life and it felt good to recharge the batteries.

Capital Contribution

It may sound like a broken record, but my capital contribution this quarter was $0 again. My saving rate dropped considerably since baby DivRider entered our life. The work time/income reduction of Mrs. DivRider, the added mortgage and the increased property costs are really adding up.

It now seems impossible to reach the 2019 contribution goal of $ 13,200. I think I can add a little new capital in December, we’ll see.

But as mentioned in the beginning, I’ve got plenty of dry powder from sales in my speculative portfolio which will also fuel my DGI purchases.

Portfolio Changes

These values come straight from my broker and differ a little bit of my own calculations, mostly because of including fees and some unpublished options plays, which I list separately for myself. I’ve also completely skipped the currency issue. I’ve taken the closing price of GBP/EUR and EUR/USD to calculate the final values. Because of this the cost base values of non-US holdings are not constant.

Stock Transactions

  • The basic material sector dipped in August and provided me a good opportunity to increase my sector weighting. I’ve added 25 shares of Eastman Chemical (EMN). I was also looking forward to add LyondellBasell Industries (LYB), but decided to go with EMN first. Both companies are pretty similar, but they do have some differences which would justify adding both to my portfolio.
  • I sold my position in National Oilwell Varco (NOV), because I don’t see a fast turn around in the oil sector and I wanted to redeploy the funds into better dividend stocks.
  • I’ve added to Altria (MO) twice in September. The stock is still in a constant decline because of the controversial around vaping/e-cigarettes, increased debt due to the JUUL minority stake and the accelerated smoking rate decline. I think the fear is overblown and it’s a steal under $40. I couldn’t resist to add and now I’m overweight in my Altria position (over 10%). I don’t think I’ll will add again in the near future.
  • I’ve added 5 shares of UnitedHealth Group (UNH) to my portfolio. The 2% dividend yield is also a steal, considering the average dividend growth rate of the last 5 years of 26.80%. I will add to this position if the share price continues to drop.

Dividend Income

I’ve received $729.64 in dividend payments in the third quarter. This is an 8.55% increase over last year Q3.

Outlook for Q4 2019

Hopefully we’ll see a similar market decline like last year to give us plenty of opportunities to add high quality dividend stocks to our portfolios at a reasonable price. I remember, I was literally feeling like Christmas last year. And those “Christmas”-positions, like Visa, AT&T or NVIDA are now up to 30% – 40% in my portfolio. I really wouldn’t mind to get another opportunity like this.

I also hope to achieve my 2019 goal to increase the projected annual dividend income to $3,639. I still need $216 more. I also have to work on my goal to improve my portfolio tracking, we’ll see if I find some spare time to find a solution for tracking and showing more stats for my holdings.

10 thoughts on “Q3 2019 Portfolio Review

  • October 3, 2019 at 4:02 pm
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    Nice numbers ,very soon looks like you will reach 4 digit in dividends.
    lot of common stocks like CVS,GILD,abbv,v,itw

    Reply
    • October 3, 2019 at 11:37 pm
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      Hi desidividend,

      I really hope so! Maybe even end of next year? We’ll see!

      Thanks for stopping by!

      Reply
  • October 5, 2019 at 8:11 pm
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    Good moves to the portfolio in Q3, keep it up! Yes another end of year sell off in the markets would be welcome. Have a great day!

    -Divcome

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    • October 7, 2019 at 11:18 am
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      Hi Divcome,

      thanks for stopping by and commenting!

      Reply
  • October 11, 2019 at 10:12 am
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    Do what you have to do. I remember those early baby DivHut days. Everything adjust in time. Finance, sleep, sanity, etc. All falls back into place eventually and you’ll get back to making contributions. At least now you said you have some dry powder with your gold spec. sale. One thing about DGI… you contribute a lot or little or nothing… the dividends still roll in. Keep up the good work. MO has been on my buy list for a few months already.

    Reply
    • October 12, 2019 at 2:06 am
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      Hi DivHut,

      thanks for your visit and your encouraging words. I really hope everything will get better, but I’m optimistic 🙂
      Regarding to Altria – I remember when it was over $70 and I thought, how could I missed this smoking jewel? I’d never had thought to scoop up a big chunk under $40.

      Reply
  • October 12, 2019 at 7:31 pm
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    It definitely felt like stock investing Christmas in the end of 2018. I have been lucky in regards of timing since I sold my ETFs shortly before and pumped the proceeds into individual stocks in December and January. Since then the market went skyrocket. Like you, I’m happy to own some stocks that are up 30-45% YTD (GIS, T, SBUX, HD, TXN). Those capital gains are sitting there and looking nice. However, what I like even more is that I bought more dividend cash flow at that time – as prices were depressed and yields were high.
    All the best.
    -SF

    Reply
    • October 12, 2019 at 10:26 pm
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      Hi Snugfortune,

      excellent timing and nice stock selections. Good decision in my opinion.
      Let’s hope we’ll get another down turn and more opportunities to get more high quality dividend stocks.

      Thanks for stopping by and commenting.
      DivRider

      Reply
  • October 12, 2019 at 10:55 pm
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    Hey DivRider! I like the Portfolio Changes table with its color coding…. very easy to follow. Nice job.
    As you know, I too initiated EMN and UNH positions recently. Glad to have you as a fellow shareholder. Hopefully, time will show we made some shrewd purchases.
    With MO so low these days, I’ve been tempted to add some, but MO already provides a decent chunk of dividend income for me and I don’t want to make it any larger.
    With a good Q4 it appears you will eclipse your annual dividend total from 2015 and establish a new record total. That would be awesome… go get it.

    Reply
    • October 13, 2019 at 2:43 am
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      Hi ED!

      thank you for the compliment!

      Regarding an overweight in Altria, I follow your reasoning. But I can’t choose what the market is willing to give me. The thing is, my portfolio is still very small compared to the final snowball. The position and dividend weightings will level itself over time. At the beginning, the high yield stocks will dominate the dividend income. But over time, the growing low yielding companies will catch up and hopefully surpass them 10 or 20 years later.

      I’m really looking forward to smash my old annual dividend income record from 2015. From then on it will be a new record every year.

      Cheers
      -DivRider

      Reply

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