Portfolio Update for May 2019

Towards the end of the month, I finally managed to find some time to make a quick portfolio summary. Looking back, April has been a very active month including two disposals and six acquisitions. May, on the other hand, has been rather unspectacular for this portfolio. More precisely, there was zero activity in terms of buying or selling. However, when it comes to dividends, I expect May to be an all-time record month since the beginning of my investing journey back in 2015. You can read more about it in the next dividend report. For now, however, let’s have a look at the latest portfolio snapshot.

SF Portfolio Snapshot

As of May 29, 2019, I’m invested in 31 companies.
The SF Portfolio has a total value of €54,627 ($60,909) and is expected to generate €1,840 ($2,052) in pre-tax forward annual income.

(Equity Allocation: May 2019)

The portfolio market value is down by -3.58% compared to the last update from April 26th. While the S&P 500 (SPX) shows a negative total return of -4.68% in the same period. Personally, I don’t focus too much on the performance comparison. My goal is not about beating an index in terms of total return. Much rather, I aim to build a reliable and growing cash flow stream. That is the highest priority in this portfolio.

And so far, there is no reason to be disappointed with the result. Even though I haven’t done any stock purchases in May, the dividend cash flow that this portfolio is expected to produce is still climbing. That is because of organic dividend growth by two of my holdings. Johnson & Johnson (JNJ) has announced a dividend increase of 5.6% and Clorox (CLX) rewards us shareholders with a double-digit dividend hike of 10.4%. So there is no need to be fearful about the ups and downs of the market. As long as this portfolio is generating an ever-growing dividend cash flow, I won’t be too concerned with the share price volatility.

TOP 10 Holdings

(Top 10 Holdings: May 2019)

There are some minor changes in the top 10 rankings compared to the last update in April. First, Broadcom (AVGO) moved out of the list and has been replaced by Union Pacific Corp (UNP). Out of all my holdings, AVGO shows the worst 1-month total return (-18%). On the contrary, AT&T (T) delivered the best performance in terms of 1-month total return (+4.1%). That is also the reason why T moved up in the top 10 list and is representing my fifth largest position now. Last but not least, Unilever (UL) was able to move up from position Nr. 10 to position Nr. 8.

Sector weightings

(Sector Weightings: May 2019)

In May, the defensive-sensitive-cyclical breakdown remains more or less unchanged at 35%-30%-35%. Thinking about the next purchases, I aim to put more focus on the defensive sector. In particular, I wouldn’t mind owning more utilities. And when it comes to this industry, NextEra Energy (NEE) is always high on my list. In addition to that, I also plan to purchase my first REIT (finally). Realty Income (O) and W.P. Carey (WPC) are two high-quality names that I like here. So far the decision is not taken yet. But there is a strong tendency that the next acquisition will be either NEE, O or WPC.

Summary

May has been a low activity month for my portfolio. After a very busy April, I have decided not to take any action. Sometimes doing nothing is the best thing one can do. However, it doesn’t mean that it has to stay like that. Above all, my goal is to grow that dividend cash flow. And let’s not forget: the best way to achieve that is simply to keep growing the share count. Happy investing to you all!

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