Half year review Pursuit 2 Freedom

Half year analysis Pursuit 2 FreedomHalf year review

Welcome to my half year review of my portfolio Pursuit 2 Freedom. The name of my account says it all, it is all about the journey towards my goal of financial freedom. To stay on track it is important to review my account every now and then so that I know if it is still heading in the right direction and that is exactly what I am doing in this post.

I will talk about the dividend income in the first half of 2017 and compare this to the dividend income in 2016. I take a look at my buys and sells and I compare the progress towards the goals I defined at the beginning of this year.

 

Dividend income

Let’s first take a look at my dividend income since creating a passive income stream is the main method of working towards financial freedom. In the first half of 2017 I collected dividends with a total value of € 226,66 compared to € 116,64 a year ago. This means my dividends increased by a whopping 94,3% over the first half year of 2017! This increase is partially because of dividend growth from my existing stocks as well as new stock purchases which I mainly bought during the second half of 2016. In the following chart you can see my dividend income per month for my portfolio.

As you can see my dividend is growing steadily. The percentages of growth will decline in the future, but the absolute growth will only increase!

My goal for 2017 is a dividend income of € 432,99, so I am on track for that goal, but I do need to make some purchased if I really want to realize that goal. However, with current valuations I don’t feel comfortable buying, so it could be I stay on the sidelines waiting for a pullback. I know a lot of people think otherwise, but I refuse to buy against to high valuations. We’ll see what the future brings!

 

Analysis

During the first half of 2017 I contributed € 2.100 in cash towards my portfolio. I have a goal of adding € 5.000 a year, so I am € 400 behind on schedule. This is mainly due to some purchased for my hobbies that where waiting for a couple of years already.

I purchased only one stock this year so far. Mainly due to high valuations in the market at this moment and because the Dollar is very strong which means US stocks are extra expensive. I don’t know what the future brings, but a market correction would actually be a great thing.

I didn’t sell any stocks.

Pursuit 2 Freedom currently consists out of 11 stocks. The stocks have weightings as shown below in the graph.

Further the table below shows all stocks that increased the dividend this year together with the increase and my current YOC.

CompanyTickerIncreaseOld dividendNew dividendYoC
Omega Healthcare Investors Inc.OHI3,3%USD 2,44USD 2,528,6%
Wal-MartWMT2,0%USD 2,00USD 2,043,5%
Royal Bank of CanadaRY4,8%CAD 3,32CAD 3,484,4%
Toronto Dominion BankTD9,1%CAD 2,20CAD 2,404,3%
Proctor & GamblePG3,0%USD 2,6780USD 2,75843,6%
UnileverUN12,0%EUR 1,2804EUR 1,43403,7%
Muenchener Rueckver AGMUV24,2%EUR 8,25EUR 8,605,1%

In my 25 year plan I set a goal of a minimum of 3% dividend growth for my stocks on average. Except for Wal-Mart, every stock that increased it’s dividend this year increased it with 3% or more, so I’m well on track of reaching that target.

 

2017 Goals

I did set more goals for 2017 then the ones I have spoken about in the different topics above. Here I will display all my goals and the progress towards them.

Financial:
  • Collect € 425 in net dividend payments.
    • I collected € 226,66 so far. I am on track but it will be hard to realize this goal.
  • Reach a total portfolio value of € 16.000.
    • This is actually higher then what my 25 year plan displays. That plan says € 15.470. I now have a portfolio value of roughly € 11.500 and I have € 2.000 in available funds. With another half year to go I’m on track for the 25 year plan goal, but I’m a bit short on the € 16.000 goal unless the markets help me here. But then again, then I probably don’t buy enough new stocks.
  • Reach a savings rate of 25% of income over the year.
    • So far we have a savings rate of 26,6%, so we are well on track for this goal.
Blog:
  • Create at least 50 posts.
    • This is my 27th post on Pursuit 2 Freedom, so I am exactly on track for this goal.
  • Achieve a 1000 page views in a single month.
    • I haven’t reached this figure yet. My best month was roughly half way. I probably need a bit more consistency in posting if I want to reach this target.
  • Achieve at least 50 comments on my posts.
    • I have no counted the comments on each page, but I expect that I am on track for this target. Still, I love interaction, so more is always welcome!
Personal development
  • Read at least 4 books about investing.
    • I’m lacking on the front of reading books. I have read “The Single Best Investment” for which I still want to write a book review, but that is it. So there is some work to do. What would be a great suggestion? Leave a comment below!
  • Follow at least 2 online seminars about investing.
    • I  already managed this goal. I had 1 interesting seminar and 1 I didn’t like at all. The thing I dislike about seminars is that sometimes it seems more about the product then the actual information.
  • Find a better way to analyze stocks.
    • I’m improving, but I’m absolutely not there yet. Still some work to do.
Family and personal life
  • Spend some time with my daughter every day.
    • Well, ever day is a hard target, but I manage to do what I want to manage, so I’m happy and I hope my daughter is happy to! We are expecting a 2nd child in 7 weeks from now, so exciting times ahead!
  • Keep my wife happy.
    • I think I’ll manage, although during pregnancy the mood can go in all directions, so sometimes I’m wondering, haha.
  • Ride at least 4000km on my road bike and 500km on my mountain bike.
    • I’m already at 3.300km, so I’m well ahead on scheme. Didn’t ride my mountain bike much, but that’s because it’s my winter bike. So well on target!

 

All in all, I like the progress for Pursuit 2 Freedom so far. I’m wishing a lot of times that things would go faster, but it is what it is and patience is the game. Keep focussed on my goals and I’ll get there!

Do you analyse your portfolio? Are you happy with the results? If you have questions or comments, then don’t hesitate to leave a comment below!

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