Jean-Louis's wallet

[Jean@Louis]

Between 2012 and 2015, I had built up a nice portfolio mainly consisting of dividend-growing stocks, roughly equally divided between Swiss and US companies (plus a few UK ones). I sold almost everything (except Apple Inc. and Novo Nordisk A/S) in the second half of 2015 to buy my apartment. I am slowly starting to build up a portfolio again. So far, I have bought:

Apple Inc.: low valuation (current PE of 10), current yield of 2.02%, dividend growing at a good pace since 2012 (CAGR 8.26%) and plenty of cash that can be returned to shareholders.

Novo Nordisk A/S: relatively high valuation (PE ranging from 25 to 30), current yield of 1.7%, growing dividend since 2001 (CAGR 23.56%), strong earnings growth. Bought following my article published on this site.

Abbott Laboratories: modest valuation (PE<15), current yield of 2.65%, growing dividend for over 30 years (no calculable CAGR), a safe bet in my opinion.

The Walt Disney Company: not excessive valuation (current PE of 18), current yield of 1.4%, growing dividend since 2009 (CAGR 21.52%). Here it is not only the growing dividend that interests me, but also the good earnings growth.

Volkswagen: low valuation, current yield of 2.52%, growing dividend since 2010 (at least). I bought this stock just after the scandal was announced. It's a bet on the stock's recovery once the consequences of the scandal have been "digested".

Using PostFinance, I strive to ensure that the value of the securities at purchase is less than 1%. Then, I want to keep the securities for many years.

My next purchases will be made when the SMI or other stock indices (NASDAQ, S&P 500) have fallen to at least 10%. Having had no cash to invest during the last significant drop in January, I am waiting patiently. I am also waiting for the new conditions following the association between PostFinance and Swissquote.

I also own some shares whose total value does not exceed 100 CHF in the following companies:

South32: I was awarded some shares following the BHP Billiton spin-off.

Admiral PLC: I was awarded some shares as dividend (choice of cash dividend or additional shares) after I sold my shares in this company.

Halyard: I was awarded some shares following the Kimberly Clark spin-off.

I don't know what to do with these shares; selling them would cost me a third of their value. So I'm holding them until I figure out what to do with them. Do you have similar experiences of allocating securities that are of low value? What have you done with them?

Also, does anyone have any information about the new/future conditions of PostFinance/Swissquote e-trading?

[Jerome]

Hi Jean-Louis
Glad to see you're getting back into dividend-paying stocks. There are some "ballsy" picks in your portfolio, but interesting ones.
Regarding these securities that are being palmed off with the shares, I must say that I have a lot of trouble with this policy. These are often second-rate positions, which will represent small values in the portfolio and which are either not technically transigable or cost too much proportionally in sales costs. In short, it is a poisoned chalice.
Even if by some great stroke of luck they were to double in value, it would still be too expensive...
Anyway, now I've decided that I won't take care of them anymore and I'll leave them as an inheritance on my deathbed to my children 😉

I don't have any information on the new conditions of postfinance with swissquote... I think that the transaction fees will remain close, and I don't really care about that... on the other hand I just hope that the deposit fees will remain free because that's mainly why I chose Postfinance.

[Jean@Louis]

Hello everyone,

Below is the status of my portfolio. All dividend payers (except Halyard which has never paid one and VW which has cut its dividend). Comments? Do you have any companies to suggest that could be a good addition to the portfolio?

Jean-Louis

 

[Jerome]

There are some great people, even if I don't know the whole team.

At the moment it's difficult to find good opportunities... lately I've been moving more towards "vice"... tobacco/alcohol... less sensitive to the vagaries of the market.

[Jean@Louis]

Indeed, opportunities are rare. I find that PM, MO, BTI, DEO and BUD are all too expensive at the moment… I am waiting even if all these stocks are interesting in terms of their dividends. VCO seems to be at a correct valuation, with a PE around 15 and expected revenue growth.

[Author]

Posts