A short update of my portfolio and dividends in April will be introduced including one big position increase made. The increase was partially decided before a fund made a big move on the company. This May a unexpected action I took will be published on the blog.
Portfolio Development in April 2021
Portfolio value developed well in April yet Telia saw its market value decline a bit while many US companies saw the price increase while the EUR appreciated (stronger currency) to USD reducing part of the gain in euros. In general I see the portfolio having a steady ground and will contribute with proper dividends in the future. The portfolio development is following general market trends and will only be tested once we encounter a market correction or crash.
Gap to target has been reduced partially driven by my big increase in one position. The short-term gap to target is now 3 220€ while gap to long-term target is 48 220 €. Given well developing dividends the long term target will reduced to a fraction within four years. Part of the reduction will be driven by more investments over received dividends. How this will end we shall see, however eexcited about what the value will be in 2025.
More details about targets can be found on Goals page.
Portfolio changes
A few small changes and one big increase in position was made as the price came down to a more reasonable level from my perspective.
Link to my portfolio page.
Handelsbanken Latin Amerika
Added to my position with 30€ from 45€ to 75€. Still the same logic applies, in the long run Latin America will see big gains once travellers start to move around. The companies there are not highly valued, and many have forgotten them due to cryptocurrencies and the situation in Brazil (even though there are many other countries besides Brazil). My view is that there is value there and that is why I have increased the position.
AT&T
Positions increased from 95 share to 100, weighted average purchase price decreased a bit, 0,06SUD per share.
Happy to have 100 shares in AT&T and will buy more if the price comes down to around $29,00. Do not see any major issues with the company at the moment and not worried about the dividend, what annoys me is the equity ratio that I would prefer to be around 40%.
Alibaba
Added a total 3 share, weighted average purchase price is now $227,23, a small decrease on per share price from $228,10. This increase came just around the same time it was announced that Charlie Munger had bought Alibaba shares through Daily Journal (Barrons, Motley Fool articles). Seems like both he and I like to buy a company at a proper margin, yes a fine was given yet the long term impact is limited.
GlaxoSmithKline
Made a bigger increase to GlaxoSmithKline, 83 shares were purchased to increase my total position to 101 shares. The issue was Elliot Management (Barrons, Bloomberg article) which caused the price to temporarily increase and ruin my purchase streak. Even though activist investors or funds such as Elliot are good to ensure management works for shareholders in the long run they do cause situations were small investors whole opportunity is ruined. This is what partially happened to me, will however see is the stock remains on a reasonable level then I will increase my positions as the company has a bigger margin of safety then many other drug makers in current markets.
Telia
Increase my position with 40 shares to 1 300 shares in total while the weighted average purchase price fell a bit to 3,77€ (0,01€ difference which is not much, yet something). Do not have much to say about Telia, a good dividend stock to keep in the portfolio. Dividends come in twice a year which gives a more distributed cash flow and reduces pressure to pay one big amount having a huge impact on cash balances.
Received Dividends in April 2021
In April my portfolio received dividends of 252,71€ gross and net 207,55€ (net is what is allocated to my account). By far the biggest contribution came from Telia representing 51% of month dividends and second biggest was Bayer with 21%. Overall return from net dividend to market value year to date is 1,16% with a few dividends to come rest of the year.
In sheet named dividends you will see the monthly dividends my portfolio receives.
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