Another month has gone by and it is time for my portfolio review for the month of June. As usual includes portfolio breakdown, new positions and more. Let’s get into it :
Apple (AAPL) – 7.25%
Freetrade – 5.18%
Unilever (UN) – 4.98%
Royal Dutch Shell (RDS.B) – 4.56%
Bank Of America (BAC) – 3.86%
AT&T (T) – 3.80%
Caterpillar (CAT) – 3.72%
Vanguard Emerging Markets ETF (VFEM) – 3.62%
Pfizer (PFE) – 3.44%
Vanguard Corporate Bond ETF (VUCP) – 2.60%
Cash And Cash Equivalents – 56.98%
New Positions
Caterpillar (CAT)
This stock has been on my watch for a while now and I saw it as a good entry point at around $120. It has been beaten down a lot lately and is priced in at a forward PE of 9, which seems like a very good value for the company.
The fears of the trade wars going on have made investors fearful for industrial companies and there is a bit of a reason for that. Still at such compressed valuations it was too good of an opportunity to pass along. I wanted to have a little exposure to the industrial sector and Caterpillar is a stock that provides that.
Now I definitely expect them to go down some more if the trade wars continue and the economy goes south. But I am confident in the company long-term and have no problem adding more. Dividend yield near 3% is fantastic for such a company.
Their dividend growth is also nice staying at 8.7% annually for the last 10 years. With a payout ratio at less than 30% I see them having no problem keeping up or steadily increasing the dividend even in a potential downturn.
Pfizer (PFE)
I have been keeping an eye on the healthcare industry for a while now and Pfizer seemed to meet all my criteria. The sector as a whole has been laggining in the last couple of years and stocks have been beaten down more or less.
What I like about Pfizer is that it is a safe company overall. They are very diversified across products and countries and they produce things that are a necessity like vaccines and different drugs.
With the ageing population around the world their business is going to receive a decent growth going forward.
They also provide a great dividend of 3.5% with around 7% dividend growth annually for the last 5 years.
I expect the company to do relatively well in a recession and will probably add a little more to my position at some point in the future.
My Plans For The Month
There are not that much things that I am looking forward to this month stock market-wise. There are no earnings coming up and not that many news that I am awaiting to hear.
Most of the important news for the coming months are probably going to be political around the trade wars. Still there are a couple of things that I am planning to do in the coming month.
Decrease My Cash Position
I have been gradually decreasing my cash position for the last months, but it is still way too high for my likings. With the ongoing trade wars I will probably be able to reduce it even more as more and more companies are getting into fair value.
I have ideas for the next month already and hope I can reduce it under the 50% mark by the end of June.
Increase My Positions/ETFs
There are a couple of positions that are too small and would like them to become a bigger part of my portfolio. Mostly the ETF part as I want to have a bigger part of my portfolio in ETFs.
Probably my first move would be to increase the bond ETF exposure and add some more to the emerging markets. Would like to add some S&P500 index funds, but still waiting to get a better dividend yield on it.
Another one I want to add is a Europe stocks index, but will probably wait a little on that one. Hard to see much positive signs from european companies in the last couple of years. Growth has been very very slow and there are just better places to put my money at the moment.
Hopefully things will change as I want to have some exposure to european stocks for diversification.
Conclusion
It has not been the most interesting month for me in the stock market. Managed to add two companies to my portfolio and I am happy with that. Other than this I have been more focused on personal stuff.
It is time to move to another city next week and my portfolio has been in the back seat for a little while now. Once I start a new job and have more money coming in things will get more interesting.
Still happy that my dividend income has been steadily rising month by month and hope I can soon start sharing with you my dividends received.