March 2020, Month review of my Vrijheid Fonds
Times are crazy right now. The COVID-19/Coronavirus pandemic is wreaking havoc almost all over the world. People are home right now; some are self-isolating while others are being required to be in lockdown. Here in The Netherlands we are not in a complete lockdown, but we are asked to stay inside and do some social distancing. Luckily most of us follow this rule, but still the virus is taking more victims every day. Let’s hope we will conquer this virus together and soon!
Not only our health, but also the economy is under pressure. Not a day goes by without important news for the economy and financial markets. I think that the consequences of the corona crisis are enormous. In addition to the uncertainty surrounding the corona crisis, the oil price has also been hit severely by the failure of the consultations between OPEC (oil-exporting countries) and Russia. Due to all this, the prices on the financial markets are going up and down sharply. Although the financial markets have already priced in a lot of bad news in the prices, I still think that we will see more sharp market fluctuations for a while.
Stay Home, Stay Safe!
There is more in life than money
As an investor, it is important to remain focused on the longer term and not make drastic decisions based on the strong short-term market movements. Or as I wrote in my blog a few days ago; Stick to the plan.
We saw the worst quarter on record for the Dow Jones Industrial Average. During the first 3 months of 2020, the index dropped more than 23%. And If we look at the S&P 500 we see 20% decline over the same period of time. I have read that this is the worst performance in 12 years. Closer to home, the Amsterdam Stock Exchange also took a 20% dive.
It is not surprising that investors sold stocks across the board given the magnitude of the decline in the indexes. But hey, we are not that kind of investors. We as Dividend Growth Investors are in it for the long run.
This market decline gave us, long-term investors, an opportunity to pick up shares of quality companies trading far below their fair value.
But also remember, it is not all about finances. The most important thing is being safe, being with your loved ones. These are strange times and I’m thankful for the time I spend with them. How nice and unique is it to have breakfast, lunch and dinner together! Real quality time! So, let’s stay positive and think about all of the good things we have.
And yes, I’m also thankful that my dividend income continues to roll in, day in and day out.
This is a blog post about my favorite topic, dividends! I hope this post inspires other people out there to start saving and investing as soon as they can. The power you feel knowing that you are richer than you were yesterday and you didn’t have to work a minute for it, is a wonderful feeling.
In total I received € 674.48 ($742.66) in passive income in March. My Vrijheid Fonds had six!!! dividend increase this month!
3M raised its dividend with 2.08%, AFLAC raised its dividend with 3.7%, Archer-Daniels-Midland raised its dividend with 2.86%, BBL raise its dividend with 18.19%, Chevron raised it with 8.4% and Consolidated Edison with 3.38%. Just click on the company’s name to see more information about these increases. In total my Vrijheid Fonds has had already 11 dividend raises this year. I love it!
If we take a closer look, the dividend was coming from:
- Royal Dutch Shell A (RDS) € 142.92
- Unilever (UN) € 88.26
- 3M Company (MMM) € 41.74
- Aflac (AFL) € 10.37
- Archer-Daniels-Midland (ADM) € 11.40
- Billiton PLC – ADR (BBL) € 35.42
- Chevron (CVX) € 35.85
- Consolidated Edison (ED) € 14.18
- Johnson & Johnson (JNJ) € 33.00
- McDonalds (MCD) € 20.26
- Microsoft (MSFT) € 12.60
- Realty Income (O) € 21.53
- Southern Company (SO) € 23.93
- Target (TGT) € 35.67
- Mutual Fund: NN Premium Dividend Fund € 80.44
- Mutual Fund: NN Europees Deelnemingen Fonds € 24.91
- Mutual Fund: NN Hoog Dividend Obligatie Fonds € 14.63
- Mutual Fund: Kempen European High Dividend Fund € 27.38
That makes a total of € 674.48 ($742.66), this is an increase of 12.94% from last year’s March. However, the attentive reader has already seen that my Rabobank Certificates hasn’t paid me out. For more information about this, just read my post Rabobank Certificates suspend payments.
But still I had a great month dividend wise!
For an update of my Dividend Income click the hyperlink.
In 2020 I already have received a total in passive income of € 976.59
If we take a look at my Vrijheid Fonds (Freedom Fund), we can see it that the markets have declined hard.
My total portfolio value at the end of March is € 109,806, which is a decrease of 12.59% over last month (€ 125,615). I bought € 100 worth of mutual Funds for my “Safe-haven-sleep-well” part of my Vrijheid Fonds. I didn’t donate any fresh capital to my Vrijheid Fonds yet.
The stock market is down almost 25% since the beginning of this year. Above I wrote down that my Vrijheid Fonds is also down this month, but I’ve lost $0. How? Simple because I haven’t sold. It’s important to remember you only lose when you sell and it’s for less than you paid. If you are down, don’t view that you’ve lost anything if you’re holding. Mindset. It’s important!
“The ultimate measure of a man is not where he stands in moments of comfort and convenience, but where he stands at times of challenge and controversy.”
Martin Luther King Jr.
So, just remember to stick to your plan and look at the great buying opportunities we are seeing right now. Again, this month I made a nice step in my journey.
How was your month? Have you seen any buying opportunities? I like to hear from you!
Thanks for reading!
Because all figures I give are in Euro’s. And because the exchange rates is not constant (duh…) my passive income changes per month (even if the dividend stays the same). For the record: I only post my passive income from dividend the month I received it on my brokers account. And it is after taxes.