My short term targets to be achieved by 2025 is to have a portfolio value of 55 000€ and annual dividends of 2 200€ (read more about my targets on Goals page). Currently the market value is at 47 669,51€ or $49 175,80 (+12,82%), which compared to year end 2020 is a reduced gap of 8 658,18€. If the value exceeds 55 000,00€ before the end of this year and dividends are paid at a good and normal paste, then target will be reached over 3 years ahead of schedule. That is both frightening sa well as exciting.
The gap to short term target is at the moment 7 330,49€ which will be reduced further once I update the portfolio with March changes. What I have to highlight in the portfolio is the increase in Telia Companys market value driving the portfolio to higher values (Telias weight is 9,52% vs 9,63% end of February). We can also see that Nordea Banks value has significantly increased as its weight of mu portfolio is now 8,41%. ViacomCBS has seen its market value increase as profits improved, from the purchase price of $14,75 to $96,13 in market value per share, the position is small yet has given a proper return. 3M weight has also increased and is currently at 7,07%.
Overall the positive development on markets has driven the portfolio to a high I did not expect. As mentioned in ViacomCBS case the earnings support the development of the stock, in Nordeas case I see mainly speculation about the coming dividend while there is not much talk about the business and its earnings power. In order for the companies to support growing or dividends at all, solid earnings is needed and then we will see good dividends.
When I look at dividends, they will be a bit from target. Shall see how this year will unwind, biggest question is if Nordea Bank will be allowed to pay out a full dividend this year. Due to the "recommendations" by ECB banks are not allowed to pay out a normal dividend, instead it is heavily reduced to a fraction of normal payments. Normally 50-70% of earnings are paid out and now maximum of 15% is allowed given fulfilment of capital and equity ratios.
This was a short update on gap to target as the market value is increasing almost daily for my portfolio. Hopefully it will continue for some time...