Saturday, May 30, 2015

Evaluation of the portfolio

The first anniversary of this blog is just a couple of weeks away!
In the past 11 months I've bought 9 high quality stocks.

During my first year as a Dividend Growth Investor, I tried to focus on dividend yield. As this yield generates money to buy more stocks. However, I'm here for the long run. This means growth is a huge factor in growing the snowball.

That's why I created the table below to evaluate the balance between yield and growth.
It is available at the second tab of my portfolio page.

As you can see, most of my high yield (3%+) stocks, don't have extraordinary growth numbers. It would be amazing if I could average the growth numbers to double digits, while maintaining the 3% yield as well.

While I don't think aiming for double digit growth should be a goal itself, I do think it would be a good idea to focus on growth during my second year of investing.

To prove there are great companies out there with double digit growth numbers, I've extended my watchlist. It now features both yield and 3-yr DGR numbers. In addition to this, I've marked some great companies like DOV, MMM, TROW, HP and ADM in bold. This means these companies have double digit growth numbers in the DGR-5, DGR-3 and DGR-1 categories.

Have a great weekend!

Thursday, May 21, 2015

Recent buy - May

Procter & Gamble (PG)
Buy: 13 shares @ 80.30

Before I started this blog, I never heard of Procter & Gamble.
It is a huge American company, but they do not operate with that name in Europe.

However, many of their companies are very well known through all of Europe. For example: Oral B, Gilette, Pampers, BrAun, Head & Shoulders and Duracell.

So what about the interesting numbers?

Dividend yield: 3.33%
3yr growth rate: 7.2%
5yr growth rate: 8.0%
P/E: 23.59

Besides these numbers, they have been raising their dividend for 59 years in a row!

The growth rates could have been better, but this yield is pretty decent for a Dividend Aristocrat like PG.

This adds $34.47 to my annual dividend income.
My portfolio has been updated accordingly.

Thanks for reading!

Disclosure: Long PG