Portfolio increase

Dear all,

Today, I am pleased to announce that we purchased an additional 350 shares of Swiss RE (SREN.VX), bringing our total position to 1475 shares.

As you know, we are big fans of purchases during the ex-dividend dates to benefits from the share drop. Today, we bought at a value of 88.2CHF vs. 95.5CHF (previous day closure) or at 7.6% discount.

This allow us to bring down our average buying price from 96.0CHF to 94.42CHF, a decrease of 1.6%

Considering the actual dividend distribution (7.25CHF), our 2016 dividend distribution from SREN.VX will be 10331.3CHF or a 32.6% increase vs. 2015!

I have already updated our portfolio.

Cheers, RA50

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7 thoughts on “Portfolio increase

  1. This year my goal was to buy before the ex dividend date. I guess buying on ex dividend date is also another good strategy. I’m a bit worried that time too heavy on financial stocks. What are your strategy? 1400 shares are a lot for of stock of the same company.

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    • Look Vivianne, in our case the ex-date is a great opportunity to buy cheaper stock, this year we did it on ROG.VX and now SREN.VX.

      For the share quantities it all depends how much you want to invest. Our portfolio value is close to 1million USD, so 1440 of SREN.VX represent 130k or 13% of the total portfolio. We have 10’000 shares in UBS representing around 160k. So the quantity of share is relevant for us for the dividend distribution.

      Cheers, RA50

      Liked by 1 person

  2. Thank you for sharing your thought. I’ve just recently discovered/learned about “the 5% rule”, no company dividend should represent more than 5% of total dividend. I’m kind of nervous with the fact that I have the whole finance sector representing >50% of my portfolio. So I’m slowing building my “wellrounded” portfolio that each stock shouldn’t account too much, in case the company cut dividend during my retirement. If the the whole sector cutting its dividend, I’ll be in red or having to scale back lifestyle even more.

    What’s your thought about the 5% rule? What are our justification holding 10-15% of each stocks, or dividend? I am still in my learning stage so I’d love to have some wisdom from guru like yourself. You guys have over $1 mil in your account, obviously you have some secret to get this much wealth.

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    • Vivianne,

      I read your article on the 5% rule. I am not somebody that follow rules, I am working and investing on instinct but investing on companies with strong dividend distribution record or companies where we can make capital gain.
      At the moment we are heavy weighted on banks (around 25%). But the banks are recovering and as well as their dividend distribution.
      So, I would not worry too much about this 5% rules, we have not followed and we are doing well.
      Cheers, RA50

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  3. RA50,

    Wow, that’s a great strategy in buying stocks that pay good divs. I had been planning on buying a good amount of T since they pay great divs, so maybe when I do buy it, I’ll wait until their ex-div date to get some savings which you seem to have benefited from! Awesome thinking.

    Can’t wait to read more posts,

    D2R

    Like

    • D2R,

      Thank for dropping buy and commenting. For this strategy works perfectly considering that the Swiss market pays the dividend once per year and not per quarter. So the impact is significant.
      T like Swisscom are paying good dividend, but I find the Swisscom share a bi to expensive at the moment.
      Cheers and looking forward reading you.
      RA50

      Like

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