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.
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.
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come straight from my broker and differ a little bit of my own calculations, mostly because of including fees and some unpublished options plays, which I list separately for myself.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.
- 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.
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.