My portfolio

[DSwissK]

I've been hanging around here for a while, it's time to present my portfolio. Especially to see what to avoid doing! ^^

Sorted by purchase date (between 2009 and the start of this week for the last two values).

 

% Portfolio	NAME	Performance	Yield
19.4%	ROG	48.6%	4.3%
11.2%	ZURN	10.0%	8.3%
9.7%	CSGN	-46.6%	3.0%
13.9%	FTR	-24.2%	9.4%
10.4%	ASCN	-8.8%	2.4%
13.9%	MCD	12.6%	3.5%
11.1%	AWR	N / A	0.0%
10.4%	HP	N / A	0.0%

Note: The yield is calculated based on the price I actually paid and is based on dividends already received.

My stock market debut began with large Swiss companies that were well known to the general public and that seemed solid to me: ROG, ZURN, CSGN but also UBSN. In between, I sold UBS with a small profit after scaring myself…

I was lucky (or had flair?) with ROG and ZURN. As a client of ZURN, I appreciate their strategy; at least for private clients. I was much less lucky (or had flair?) with CSGN, thinking that the crisis was over for banks after the tornado of 2008, wrong…. I know that some do not let a value fall below 20% and pocket the profits if the stock goes above this percentage. I chose to keep my shares while waiting for a possible improvement in the more or less long term.

Then I became more specifically interested in dividends but without yet coming across this site and made the mistake not to make: betting on yield only. We can clearly see the problem with FTR here. illustrated recently by Jérôme. It is also a telecoms company.

ASCN is an idea found in the Swissquote magazine but which is not paying off for the moment…

Then I came across this site which confirmed that ROG and ZURN were good values for the strategy of growing dividends. So I added MCD (known and recognized as much for its "restos" as its dividends) and then, at the beginning of this week, AWR (found on this site and confirmed by another similar strategy) and HP. Two companies that I know little about but which seem very solid.

In summary, a few beginner's mistakes, a few good leads, I find myself with a portfolio that is very close to a performance of 0% for the moment but which seems to be heading in the right direction (it was close to -15% not so long ago) and which is bringing in a few pennies via dividends.

PS: I am looking to sell FTR as soon as it goes back up to around $4.8 to avoid too big a loss. This is my only real regret because I believe much more in CSGN than in FTR for the years to come.

[Jerome]

Thank you for sharing your portfolio. You already have some great stocks, and above all you learn from your mistakes and are moving in the right direction. I was indeed surprised to see FTR in this portfolio, but as you say, it is often the classic mistake when you start investing in dividends. We are only interested in the yield, without looking at the company's ability to ensure the payment of distributions. I see that FTR still has monstrous payouts, which actually reminds me of its sister company CTL in many ways. The difference is that the latter was one of the dividend aristocrats, with a decent distribution ratio at the time.

As for financials, like CSGN, I'm not a big fan of them, because they are by definition cyclical, so they have a lot of trouble ensuring the continuity of dividends. ZURN is also in this sector, but insurance companies are still more stable than banks. It's a stock that I've had my eye on for quite some time and I'm becoming more and more interested in it.

I analyzed HP, it is interesting, but too volatile for my taste unfortunately. 

I don't know ASCN too much, it also seems quite volatile to me, perhaps a little expensive, and with little dividend history.

The other stocks you submit follow a dividend growth strategy perfectly.

[DSwissK]

Hello team,

Small update of my portfolio.

% Portfolio	ticker	Performance (without div)	Yield
16.8%	ROG	57.89%	4.76%
8.1%	CSGN	-45.41%	2.5%
10.1%	MCD	0.8%	3.65%
9.3%	AWR	3.19%	2.98%
12.5%	HP	43.71%	3.53%
14.2%	ZURN	5.61% (13.30%)	0% (8.67%)
10%	TGT	2.29%	N / A
9.6%	PM	-1.49%	N / A
9.6%	NESN	-0.38%	N / A

NB: The yield is calculated in CHF and in relation to the purchase price; only CSGN (which is not part of the Dividend Growers strategy) lowered it during the observed period.

I sold ZURN and then bought it back a little cheaper (to change providers without unnecessary costs and at the same time increase its share). Compared to this transaction, the value in parentheses indicates the performance and yield in relation to my initial purchase.

I finally managed – with a lot of patience – to sell FTR with +/- 0% loss (taking into account dividends of course).

ASCN was sold with 4.5% of gain (11% taking into account the divs) because it did not meet the "Dividend Grower" criteria that I want all the lines in my portfolio to adhere to. (I'm still waiting for the day when CSGN will show some encouraging signs.... Especially since it is now the only value that is with the provider that I would like to free myself from)

In the news since July 2013 (and with all the reservations that one can have about a short-term analysis of a long-term strategy), HP turns out to be an excellent choice. AWR holds up well (note, I would not expect less for a Dividend Champion).

I recently added TGT, Dividen Champion of course, which "let" its customers' personal data (including credit cards) be hacked, which drastically caused its share price to fall. Let's take advantage!

 

I've been wanting NESN for a long time. It took until the last drop in mid-March for my buy-in value to be reached.

 

I still have some cash left and I am now hesitating between T and CVX which are two solid Dividend Growers rather undervalued at the moment (in fact the two best values according to a strategy similar to that of Jérôme's site: http://www.scottsinvestments.com/2014/03/06/march-high-yield-dividend-champion-portfolio/). But I already have HP related to oil and, despite the juicy dividends from telecoms, I really don't want to repeat an FTR-like experience with T… Any opinions?

[Jerome]

Hi

Your wallet is starting to look good, it's just a shame about that little line of CSGN. Glad you were able to get out of FTR without any problems.

I see you were also tempted by TGT, the lame duck who ultimately doesn't seem so bad.

I might be tempted by Nestlé like you, which has interested me for a long time. I sold it a long time ago, with great regret, before following a strategy oriented towards increasing dividends.

HP, nice choice indeed. I will note it in the titles to analyze and why not add it in the strategy of the Global Dividend Growers.

In a way I find most stocks much too expensive at the moment unfortunately. Between T and CVX that you mention, I have a preference for the second (more history of increasing dividends).

 

[Jean@Louis]

Hello DSwissK and Jérôme,

 

Always interesting to see other people's portfolios and how they're built!

 

I recently bought modest amounts of CVX and T shares. These are, according to FastGraphs, two stocks that are fairly priced, if not below intrinsic value (as determined by earnings). I have pasted the charts from today's FastGraphs below.

A major difference is the dividend yield and growth. For CVX the yield is lower than that of T, but the growth of the former is much stronger than that of the latter.

 

 

 

[DSwissK]

Thank you Jean Louis for these two very interesting graphs which confirm Jérôme's comments. I think I will actually take a few shares of CVX.

[DSwissK]

Hello team,

I'm taking advantage of this winter day to fill out my tax return (…!) and do a little update of my portfolio.

// The TABLE function no longer exists?! I had to type the HTML code to avoid something too indigestible ^^

% Portfolio	ticker	Performance (without div)	Yield
14.4%	ROG	51.24%	3.96%
5.4%	CSGN	-58.97%	2.33%
9.2%	MCD	1.75%	3.44%
10.8%	AWR	34.21%	2.65%
7.8%	HP	0.10%	3.43%
14.9%	ZURN	24.14%	5.77%
11.9%	TGT	36.54%	2.85%
9.1%	PM	3.81%	5.28%
9.3%	NESN	8.01%	3.64%
7.1%	CVX	-6.85%	3.33%

NB: The yield is calculated in CHF and in relation to the purchase price once the dividends have been received; those of NB: ROG (March) ZURN (April) CSGN (May) and NESN (April) have not yet come in, hence the drop in the effective yield compared to my last summary.

ROG and ZURN: the two "bar pillars" of my portfolio. I still appreciate them as much (see my first post for more info). In addition, by an accounting pirouette, ZURN dividends are not really dividends and are therefore not subject to tax, nice.

MCD is very stable. It is one of the most defensive values in my portfolio. I especially appreciate the "real estate" side of this company (much more than their fries) which solidly cement its value.

AWR is doing very well. A nice performance of 20,53% in the year and – above all – a dividend that is increasing. They say that you should always know what you are investing in. I admit that I know very little about this company.

HP, after an exceptional first year, has quite logically followed the oil curve and is at levels almost identical to those of my purchase (in July 2013). I hesitated for a moment to increase the position but I already have CVX which is bathed in black gold. Here too, a dividend which increases regularly.

TGT, "the lame duck that ultimately doesn't seem so bad" as Jérôme put it, is doing wonderfully and even has the luxury of being the number 1 annual performance in my portfolio (38,24% without div). However, I plan to sell it very soon because I sense a backlash (I explain below).

PM is very similar to MCD: extremely stable price and dividends that are slowly but surely increasing.

CVX is in my opinion a good company bought at the wrong time. Despite the drop (fall?) in the price of oil, I find its performance not so disappointing. In the medium term it should become a good value.

Regarding my choice to sell a Dividend Grower (TGT):
I am a very patient person and I want to follow almost blindly the strategy I choose. However, I still regret (a little) not having sold HP when it was selling at $110 this summer. Even if it means buying it back when/if I find that its price is undervalued again. I will therefore slightly modify my criteria for selling a position.

Before it was:
if ($Position == Dividend Grower) {
KEEP $Position;
} else {
SELL $Position;
}

Now, a position will be potentially “sellable” if its performance (without dividends) reaches more than 30% and its annual performance exceeds 20% (currently, AWR and TGT are “sellable”).

Without changing my mindset (I still want to only have "Dividend Growers" in my portfolio), I am leaving myself an opening for a strategy based on a shorter term and taking advantage of harvesting the fruits if they really become tasty.

For the future, I have some cash and I want to invest in 2-3 new lines. The Swiss mini-crash opens up opportunities. Any ideas/suggestions? (I know the site is full of them but it's always nice to read some opinions from people on this forum)

[Jerome]

Hello
thanks for this update. You are already on your tax return… you are brave. Haven't found the motivation to do it yet. It must be said that it is one of the less pleasant sides of dividends
Indeed, the recent decline due to the CHF seems to open up new nice opportunities in Switzerland and abroad, but I must say that I have not found anything really interesting, as the market is overvalued at the moment. Only the oil companies were interesting, but they have already gone up.
Regarding your titles, indeed there are some nice pillars and some nice very stable values. Always interesting to see that some values in USD can prove to be very stable in CHF. Few people are interested in this phenomenon that I have been trying to explain for a long time. Too bad for them…
Yes, TGT was one of the nice surprises of 2014… not easy to believe 12 months ago, given the quagmire they were in, and once again the resilience of growing dividends worked wonders.
Regarding your new criteria, it is always the eternal question, should you take your profits or try to take advantage of a greater increase in the stock. I understand your choice, especially with the current market level, but, because of the resilience of growing dividends, I prefer not to sell. Even if I had to lose 20% I could live with it. It is all a question of perspective. If I had sold some stocks after 20% of gain I would have lost many gains of several tens and even hundreds of %.

[DSwissK]

TGT sold (at $76.95) with a profit of 39%.

Buying SNH (at $22.22) this week and soon DOV.

[Jerome]

You've finally sold the ugly duckling

[DSwissK]

Good morning,

It's time for my annual portfolio update.

Part Ticker Perf (without div) Yield
10.9% ROG 41.28% 4.80%
3.2% CSGN -70.54% 2.30%
10.2% MCD 40.61% 3.76%
9.1% AWR 38.97% 3.03%
5.9% HP -6.29% 4.03%
8.8% ZURN -9.78% 5.94%
9.3% PM 31.26% 5.06%
7.6% NESN 8.62% 3.31%
5.4% CVX -13.10% 3.93%
6.1% SNH -23.25% 10.10%
6.6% DOV -7.43% 2.26%
8.3% EMR 7.12% 4.75%
8.6% SKT 9.12% 5.46%

NB: The yield only takes into account the dividends received, converted into CHF if necessary, in relation to the purchase price.

Average annual performance (with dividends): 4.72%
Positions held on average 880 days

CSGN is still a stain; I don't really know what to do with it...

SNH's performance is not exactly glorious either but offers nice dividends. According to Jérôme's site (REITs & MLPs strategy), it is a value with good fundamentals.

I am surprised by the relative good performance of my oil stocks.

In my portfolio, MCD turns out to be the number 1 asset of 2015. PM follows right behind.

I created a small index that allows you to rate the different lines (and possibly decide when to add or sell) by taking into account the different parameters of the strategy followed. The values that do best are (in order) PM, AWR, MCD and ROG.
The worst: CSGN (obviously, as it is not a Dividend Grower) and DOV

[Jerome]

all REITs are struggling unfortunately at the moment, not just SNH
It is clear that the tightening of US monetary policy is not helping

[DSwissK]

% Ticker Perf (without div) Yield
9.4% ROG 47.56% 4.18%
2.7% CSGN -69.73% 2.19%
5.7% HP 8.03% 3.91%
8.9% ZURN 9.58% 6.31%
6.6% NESN 13.41% 3.42%
6.1% SNH -10.24% 6.83%
7.1% SKT 8.15% 3.81%
4.8% SYNA -24.76% 0.00%
6.5% TGT 0.59% 2.56%
7.6% DIS 18.23% 2.55%
7.7% ULVR 17.18% 0.00%
6.3% VFC -8.92% 0.00%
6.6% TEVA -0.33% 0.00%
6.7% KO 1.93% 0.00%
7.5% HRL -0.80% 0.00%

[DSwissK]

Average annual performance (with dividends): 7.27%
Positions held on average 770 days

MCD sold, profit taking: 43.69%
AWR sold, profit taking: 69.92%
PM sold, profit taking: 39.32%
CVX sold, profit taking: 0.67%
DOV sold, profit taking: 12.86%
EMR sold, profit taking: 16.11%
ADM sold, profit taking: 30.50%
SCTY sold, profit taking: 27.97%

Purchase of ADM (later resold)
Purchase of SYNA (a find in Swissquote magazine. These finds are definitely...)
Purchase of SCTY (later resold)
Purchase (again) of TGT
Purchase of DIS
Purchase of ULVR
Purchase of VFC
Purchase of TEVA
Purchase KO
Purchase of HRL

I feel like it's going to crash (and I hope so). That's why I sold a lot of old (and not so old) stakes.

[Jerome]

It's the big clean-up it seems to me 😉
I also started selling some titles
At the risk of repeating myself, the price of many stocks is overvalued at the moment.

[Author]

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