It’s been quite a while since I gave you an update. Let’s get on with my portfolio review for April 2022.
I will give you a little bit of update on myself a bit later down the line, for now let’s get right into it with an up-to-date review of my portfolio.
Portfolio Review
- Apple(AAPL)- 18.3%
- Qualcomm(QCOM)- 9.6%
- Abbvie(ABBV)- 7.5%
- Lockheed Martin(LMT)- 6%
- BP(BP)- 4.5%
- Pfizer(PFE)- 4.5%
- Realty Income(O)- 4.3%
- Mcdonald’s(MCD)- 4.1%
- Cisco(CSCO)- 4%
- Mastercard(MA)- 3.8%
- Vanguard Emerging Markets(FVEM)- 3.7%
- Cash- 3.6%
- Barrick Gold(GOLD)- 3.3%
- AT&T(T)- 3.1%
- Unilever(UL)- 3%
- Verizon(VZ)- 2.9%
- Rio Tinto(RIO)- 2.8%
- FedEx(FDX)- 2.6%
- Texas Instriments(TXN)- 2.6%
- Nike(NKE)- 2.1%
- Meta(FB)- 1.8%
- Others- 2%
As you can see compared to my last Portfolio Review some things have changed, but most have remained the same. I haven’t really sold anything, I have just opened some new positions. Which brings me to the next point.
New Positions
- Mastercard, Nike & Texas Instruments
I am placing those 3 together for one reason. I have been slowly building positions in those 3 over the last 2 years and I am planning to do so for the foreseeable future.
I am not in a rush and I mostly use my dividends and some small sums here and there to slowly nibble some shares of those companies. All three very solid, often trading at a premium valuation, hence why I prefer to be building my positions in them slowly and by averaging over time.
I am very confident in all 3 of these companies and don’t mind adding shares no matter the price they are trading in. If they trade at a higher valuation I just add less and if they are down I add some more. My plan is to have them at a bigger part of my portfolio over time, but I am not in a rush.
I have a couple more companies in the same graph that I am planning to start adding to in some point in the future, but more on those later down the line.
This is actually a newer addition to my portfolio and I started initiating a position last month. Overall they provide a very solid dividend of around 6% and they often distribute special dividends on top of that.
At the moment they are trading at a forward PE of 6.48, have an impressive 41% return on equity, solid balance sheet and a diversified operations across industries and regions.
They are a commodity company, which in my opinion means two things.
Number one- they stock price can be very volatile throuought the year and depending on the economy cycle we are in. Also number two- they are a good hedge against inflation.
I already have a position in Barrick Gold, which is another commodity company, but I don’t mind a little bit diversification, also the dividend is quite nice and them being listed in the LSE, I get some tax advantages dividend-wise, which I don’t mind.
Of course investing in commodities carries a risk as during a recession their prices can fluctuate a lot, and with that the stock price of the given company. But their management have a good track record and they have been solid in providing a steady stream of dividends to their shareholders, so I am happy with that for the time being.
I wouldn’t say this is my full position yet as I am looking to add a bit more on downdays, but Rio Tinto is a welcome addition to my portfolio, which has been quite tech-heavy for quite some time. Rio Tinto provides a different bit of exposure for me.
This is also a very new addition to my portfolio and I have just initiated a starting position in the company following the latest downtrend the sotck has been in.
The stock reached all-time-highs of near $380 going into end 2021, but has been down nearly 50% since then. The sentiment around Meta usually shifts to bearish very quickly and the stock tends to get beaten down a lot.
At the moment we are at one of those times once again. No one really knows what the future holds, but at the moments the company is trading at 14.66 forward PE and 1.04 PEG.
Given their solid profit margins of 33%, 35% return on equity and a pristine balance sheet with 50B in cash, I am willing to get on the ride.
In my opinion such a valuation for a company that is expected to be growing double digits going forward is just too good to pass on. This is of course my personal opinion on the matter and I am not going to get into discussions on wether it is the right move or not. I am sharing all this with you for transparency purposes only and this is in no way a financial advice.
Given the volatile nature of the stock market lately I fully expect the stock to drop further down. They have earnings coming up this week and with a bearish sentiment around the company every slip up is going to get punished by shareholders.
And I expect to have a lot of turbulence around this company in the coming couple of years. Their main business is maturing and slowing down, the metaverse is one big question mark and governments around the world are cracking down on ad targeting.
No one really knows what the future holds and if someone say they do they are lying. At the moment Meta is a very small position of mine, I will be looking at their upcoming earnings report and evaluate my long-term strategy with the stock after.
Portfolio Performance
This is a new graph that I am going to implement going forward, again for transparency purposes and I think it would be fun to see the journey of my portfolio.
As you can see, since March 2020, my portfolio is up 46.20% against 32.98% for the FTSE All World ETF.
The S&P500 is up around 40% during that timeframe.
As you can see I am beating those indices by a little margin, but I honestly don’t expect to do that going forward and over a longer period of time. My main reason on building my own portfolio against just going for an ETF is that I have more control over it.
If I want to have more dividend income, I can just add more to my dividend positions. If I want to have less dividend income, I will add more to my lower dividend positions. If I want to diversify more I can add a bunch of ETFs. If I want to diversify less I can close some of my positions and so on.
Again, this is in no way a recommendation, everyone has different goals, time horizons, and personal circuimstances around him. So choose your strategy according to your own personal needs and don’t blindly follow random people on the internet.
Conclusion
I am going to wrap it up at this for today. Hope you enjoyed following through. I certainly missed doing those portfolio reviews and I am going to try and do them more often going forward.
I will also share an update on how are things with me and with my journey. A lot of things happened since last time I was here and I will try to give you a bit of a breakdown in the coming days.
Again, thanks for following along, wish you all the best going forward and don’t forget to subscribe to my newsletter for some extra content and a free little booklet on how to build a monthly dividend portfolio.