The first quarter of 2015 is already behind us. Wow time really flies when you having fun. So here is my Q1 review letter to my readers. Lets see what the first quarter of 2015 brought. Just as a reminder, see this blog post for my 2015 goals.
With the first quarter 2015 in hindsight, it’s time for a formal quarterly review. Why do I do a quarterly review you ask? Well there are a couple of reasons (besides because its fun to write). By doing my own review periodically it will help me understand whether I’m on course to meeting my goals, or whether I need to change my strategy or tactics.
It also helps me to stay focused on actively managing my Vrijheid Fonds. And I believe it helps me, through reflecting on the past, to be a better DGI.
So lets take a look at my five goals for 2015.
- Receive € 1,750 in dividends during the year of 2015.
In the first quarter I received € 322.77 in dividend income. Normally the first quarter of a year is the slowest quarter. So for a slow quarter I’m happy with this amount of passive income. My projected dividend income for 2015 is € 1,644.38
As I told you in my 2015-goals-post, this first goal will be a challenge for me. And it still is. I need to gear up a little to achieve this goal. At this moment I have about $ 1,500 of fresh capital ready to invest. As I wrote in my last analysis, I’m thinking about buying HCP. With the current stock price and yield of HPC, this will bring another € 43 of possible dividend income this year.
If I take a look at the rest of this year, I project at least 4 new stock purchases of about (€ 1,200 or $ 1,500) in 2015. If these purchases have a yield of 3% and there will be more dividends increases this year, I believe I will reach this goal.
There is one risk that needs to be mentioned. And that’s the euro/dollar exchange rate. As a European DGI, it is becoming more and more expensive to buy dollar stocks. This means fewer stocks for my precious euros.
Because of this, I’m turning my attention to euro stocks at this moment. And the list of No More Waffles is helping a lot. There are some great dividend growth stocks in Europe. For example Munich Re, see the analyses of NMW here.
The small downside of European stocks is that most of them only pay yearly dividend.
- Save 40% of my net income in 2015, averaged monthly
As I told you in my 2015 goals Post, I want to save 40% of my income from my day job. This is a high percentage, but I think it will be possible. Not all this savings will go to my Vrijheid Fonds. Here I will break my savings down.
- College fund kids: 2%
- Home improvement: 14%
- Family Savings account: 16%
- Vrijheid Fonds: 14%
As I already told in an earlier post, my wife and I are saving for some home improvement at the end of this year. We want a new bathroom. As you can imagine a lot of cash is going that way. The family savings account is used for holidays, (medical) insurances, emergency fund, etc. Just the normal things. And the college fund for my kids is a separate account, with mutual funds. And you guessed it; this is for putting our kids through college when they are older.
As you can see, I have saved a total of 46% of my net income. Yeah, I’m well on my way to achieve this goal.
- Invest a total of € 5,000 new cash
In order to let my Vrijheid Fonds grow, it needs fresh cash. This quarter I added € 1,200 of fresh capital. And it is ready to invest. With € 1,200 of fresh capital to my Vrijheid Fonds in the first quarter, the year-end goal will be achievable. For now, I’m well on my way!
- Write a least 50 post on Polliesdividend!
I started to write my investing decisions down, which helps me to make better decisions. And it also helps me to track my progress. That’s what I told you last year when I started Polliesdividend. And it is still true. And besides I’m starting to really like it. Especially when I got feedback from you, my dear readers.
This will be my 26th! post this year. So I think I will achieve this goal (understatement). For now, I’m very happy and proud of myself. In my half-year review I will see if I have to adjust this goal.
But before we go off to my last goal, fist lets take a look at the statistics of my website:
- Number of views in Q1: 6,448
- Number of visitors in Q1: 2,395
- Number of comments in Q1: 169
Top 5 bog posts:
- Some impressive stocks
- Recent buy – CVX
- Omega Healthcare Investors inc. – (OHI) Stock analysis Pollie Style
- When do I reach FI?
- A stronger Dollar – Good or Bad?
Top 5 countries from which people read my blog:
All in all it is been a good first quarter for polliesdividend.wordpress.com. In the next couple of months I have to think about what I want to do with my website. Do I keep it a free website at WordPress, or will I get my own website. And by doing so, open up the opportunity to make some extra passive income with ads. However owning your own website also brings cost. Does extra income outweigh the cost? That’s an important question, so I have to look into this. I want to make a decision before the end of 2015. So still some plenty of time left.
Do you, my reader, have experiences with this decision, and what would you recommend?
- Invest in my self by following a course or webinars.
Stephen Covey called it Sharpen the Saw. I think it is important to keep educate yourself. And of course maintain good health.
For my physical sharpening I have been going to the gym two times a week in this first quarter. My mental sharpening I did by following two webinars. The first webinar was a Dutch webinar on Tops and Tips for 2015. It was given by a well know financial journalist of a weekly investing magazine. He had some tips about European dividend stocks (Novartis, L’Oreal and Coloplast).
The second webinar was about securing profits by using options. I’m not sure if this is my cup a tea.
And of course I continued to read blogs of fellow DGI’s and articles on Seeking Alpha. This gave me new insights on some investing issues. What a present for me it was!
I already achieved my goal. So it is time to adjust my goal. My new goals for 2015 will be to follow a webinar/e-course every quarter.
Grade: Passing! and Adjusted!
Key Statistics Vrijheid Fonds:
Some key statistics on my Vrijheid Fonds for the first quarter of 2015:
Net Value: € 58,196
Growth Net value: 13.55%
Fresh Capital: € 1,200
Dividend Income: € 322,77
Number of stocks: 17
New addition: 21 stocks of CVX, 3 RDSA (Drip) and 1 UL (Drip).
Number of dividend increases: 4
Percentage Dollar stocks: 37.20%
Dollar: One other thing that needs to be told is the rise of the dollar in this quarter. The dollar has risen approx. 12% (from 0.8265 to 0.9274). For my Vrijheid Fonds the value of dollar stocks will benefit from a stronger dollar. However the turnover from a lot of companies will definitely not benefit from a stronger dollar. For further explanation see my post here. And this will influence their profits in a negative way. And a stronger dollar also means that it is getting more expensive to buy new dollar stocks.
ARCP: We all know what happened with ARCP in the last quarter in 2014. They stopped paying dividend, but they intend to re-instate it soon. And they have found a new CEO. Last year I received €28.17 of dividend. I projected approx. € 70 of yearly dividend. And that dividend I’m missing at this moment. I did not sell ARCP when everybody else did. ARCP is the world’s largest net lease real estate investment trust. And I think with the right management (and they are working hard on this), it will be a great company. So I have to wait a little bit longer.
Well, things are looking pretty good. I’m passing four out of five goals, and I adjusted one goal. To achieve all goals at the end of 2015, I need a little bit more effort on increasing my dividend income. But as I wrote, I think it will be possible.
How about you? How are you doing with your goals for 2015? Passing or failing?
Thanks for reading!