Most of 2015 is already behind us. Wow time really flies. Tomorrow the last quarter starts. So here is my Q3 review letter to my readers. Lets see what the first nine months of 2015 brought. Just as a reminder, see this blog post for my 2015 goals.
In my Q1 review of 2015 I told you why I do a quarterly review. There are actually 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 nine month I received € 1358.74 in dividend income. I’m happy with this amount of passive income. I managed to have an increase in dividends every month in comparison to last year. My projected dividend income for 2015 is € 1,761.66
So it looks like I will reach my goal. But I will not sit back and relax. My projected income depends on the dollar-Euro exchange rate. That’s why my projected income is far from certain. The next three months I’m planning at least 2 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 blow this goal to smithereens.
As I already mentioned, there is one risk for this Dutch DGI. And that’s the euro/dollar exchange rate. The Dollar has gone up a lot in the last year. The Dollar/Euro exchange rate is at this moment $1 = € 0,8945. So it is becoming more and more expensive to buy dollar stocks. This means fewer stocks for my precious euros.
To use an understatement: I’m well on my way for reaching this goal!
- 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%
- Savings accounts: 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 saving accounts are 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.
The last three months I managed to save 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. The Third quarter I added € 1,600 of fresh capital. With € 4,000 of fresh capital to my Vrijheid Fonds this year so far, the year-end goal will be achievable. For now, I’m well on my way!
- Write a least 50 100 post on Polliesdividend!
I really start to like writing my investment decisions down. This first half-year I wrote a lot of post. And looking back on them I can say, it really helps me to make better decisions. And gives a nice overview of my journey. And what really brought a smile to my face, were the numerous feedback I got from you, my dear readers.
This will be my 67th! post this year. I’m behind schedule for the goal. The last month was very hectic at work and I had little time (and energy) to do some research and/or write a post. Furthermore I have been on a road trip in the USA with my family the whole month of July. Considering all this, I’m very happy and proud of myself.
But before we go off to my last goal, first lets take a look at the statistics of my website:
- Number of views: 17,613
- Number of visitors: 6,769
- Number of comments: 429
Top 5 bog posts:
- Some impressive stocks
- Omega Healthcare Investors inc. – (OHI) Stock analysis Pollie Style
- Letter to my readers – 2015 – Q1
- Is South32 Ltd going North
- Recent buy – CVX
Top 5 countries from which people read my blog:
All in all it is been a good first nine months for polliesdividend.wordpress.com.
The month September was the slowest month so far. I have to pick it up in the last three months of 2015.
- 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 still been going to the gym two times a week in this first quarter. I have lost some weight and I’m feeling much fitter. So it works!
My mental sharpening I did by following two webinars. One webinar was about the basics of ETF and the other was a view on the market and the world by one of the Dutch top economics.
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!
As I told in my Q2 review, I already achieved my goal and adjusted it. My new goal for 2015 is to follow a webinar/e-course every quarter. Also on this goal I’m doing great!
Key Statistics Vrijheid Fonds:
Some key statistics on my Vrijheid Fonds for the third quarter of 2015:
Net Value: € 54,950
Growth Net value (from 1/1/15): 1.66%
Fresh Capital: € 4,000
Dividend Income: € 1358.74
Number of stocks: 21
New addition: 21 stocks of WMT, 15 stocks of CVX, 20 stocks of PG, 4 RDS-A (Drip) and 1 UN (Drip).
Number of dividend increases: 2
Percentage Dollar stocks: 44.59%
Vereit (VER): Vereit- formally known as ARCP. We all know what happened with ARCP in the last quarter in 2014. They stopped paying dividend. Because of the total amount I invested in ARCP and the portfolio of the company, I decided to leave my ARCP-stocks alone. So 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 it will be a great company (again).
The changed not only the name of the company but also the complete management. In August they finally announced the re-instatement of their dividend. They will change the dividend from a monthly to quarterly bases.
In October the first dividend will be collected. They will be paying an annual dividend of $ 0.55. With the current pricing of VER, this is a Yield of about 7.2%.
Oil: The oil price has been cut in two in just one year. At this moment WTI Crude Oil is $45.23 and Brent Crude Oil is $ 48.23. Just one year ago it was more than $ 80. This decline is due to the over capacity of the market. And the OPEC is not planning to reduce the production of oil. So this is one of the biggest reasons why the oil price is this low. These oil price leads to fewer profits of the major oil companies.
Some experts say that the oil prices will be low till at least 2020. If this is true the major oil companies will be having a hard time to maintain the dividend increases each year. We will just have to see and wait. But on the other hand it gives also a nice buying opportunity. Which I did, by buy some extra CVX.
Teaching my kids: In August I started writing some post to try to financially educate my kids. I know they are still very young (4 and 7) but it is never too early to start. And the can read these blog posts later on in life 😉 (This is probably the case, because they don’t speak or read English very well at this moment – You got to love an understatement!).
I had some great feedback from you readers on these posts. Thanks for that!
Here you can read the posts on Teaching my kids till this date.
Well, things are looking pretty good. I’m will be passing all my five goals, and I already adjusted two goals this year.
How about you? How are you doing with your goals for 2015? Passing or failing?
Thanks for reading!