1st half 2013 performance

There performance in CHF from portfolio is exceptional in the first half of 2013, with +20,43%, despite the correction that began at the end of May. Cumulatively, this brings us to an annual profitability since launch (03.02.2010) of +12,82%. The portfolio even does better than the market (SPI +15,21%) during this bullish half-year, even though it has a defensive vocation. I remain very cautious, however. This performance is not commonplace over such a short period of time, even though the previous semesters were already more than good. My strategy is not necessarily aimed at beating the market during bullish periods, but rather at behaving better during bearish phases.

Dividend growth partly explains these results. This now stands at 10,93% per year. Thanks to this, the yield on purchase cost of my portfolio amounts to nearly 3%, even though the current yield is low, at nearly 2%. Despite this significant growth in dividends, the distribution ratio The average portfolio remains particularly cautious, with less than 40%. This still leaves a lot of room for growth for future dividends.

In the first quarter, CHF 523 in net dividends were generated (CHF 461 in the same quarter of the previous year). In the second quarter, CHF 1,000 was received, compared to CHF 936 in the same period of the previous year. The second quarter is always fuller, thanks to the annual Swiss dividends.

I am thus progressing slowly but surely towards my goal of financial independence, even though I have not made any purchases since Hormel Foods in January 2012. Thanks to the growing dividends, my income is increasing even though I remain completely inactive. The reason for this temporary passivity comes first of all from a lack of liquidity following a real estate investment. Subsequently, it was the overvaluation of the stock market that dissuaded me from investing.

The correction that began at the end of May opens up new opportunities. While many of the titles monitored as part of my portfolio had to undergo a rating downgrade during the first half of 2013, due to the increase in the price of most securities, the movement has been reversed in recent weeks. The market remains overvalued overall, but there are still some nice opportunities here and there.

I think the correction will continue during the second half of the year. In any case, I plan to return to the market, occasionally at first, and more massively if the market corrects sharply.