This month marks the first year of Build-a-Stock-Portfolio. That means I’m looking back at the portfolio I generated last year. I’ll spoil it right away: It’s not looking good.
Last year, I presented a dividend growth portfolio consisting of Dutch companies. Due to the Corona-crisis, all stock, including the one in the portfolio, took a serious beating in March:
To summarize the portfolio’s performance over the last year:
In the below performance overview I have included the dividend that was already paid by the companies. Some have delayed their full dividend and promised that they will pay it later in the year. However this is obviously not set in stone and who knows how the crisis will impact them.
If they do decide to pay the dividend, it will be included in next year’s evaluation.
One of the things I wanted to do this month was automate some of the portfolio calculations. However, it turns out it’s quite complicated to find reliable sources for much of the data. The current stock price is easy to get, the enterprise value too.
But dividend information turns out to be really difficult to obtain:
In the end, I was able to hack something together using Google Sheets, Google Finance, Yahoo! Finance, some copy-pasting and some tedious manually going over individual sites.
The result is not something I’m ready to make public. But I have good hope that this is going to improve and I may be able to offer you customizable portfolio’s that allow you to play with the parameters.
I have changed the portfolio criteria a little bit compared to last year. The main goal is to select reliable companies that are going to be able to weather the Corona storm (I’m sure it’s not over yet):
|2019 Portfolio||2020 Performance||Notes||2020 Portfolio|
|KA||2.41%||KAS Bank was bought by Crédit Agricole||SLIGR|
|KVW||31.36%||Koninklijke VolkerWessels was bought by Reggeborgh||REN|
Only one company is back in this year’s portfolio, it’s URW (Unibail-Rodamco-Westfield). They had an understandably bad year but their dividend history is incredibly solid with a low payout ratio (45%), so I’m still expecting a lot of trouble for them, but the numbers don’t lie.
Otherwise, I think there are some very solid companies in the list, so I’m (again) expecting a lot of this team.
My philosophy: If you want to invest and your goal is to try to beat the market, you need a system. You need a system that can decide for you what to buy, when to sell and not to panic when things go down. Everything starts with selecting stock. You should not just select random stock here and there based on whims or things you read. No, create a system that suites your style and follow it. These posts give you example of what such a stock selection could look like.
Disclaimer: Don't believe anything I say or write. Always do your own research before making any investment decisions.