Recent Investment July 2017

Hi guys, it is already July I can not believe how fast time flies by. I am always excited to post something about my investments as it just another step towards financial freedom. In my recent dividend income update I mentioned that I will change my investment focus a bit more towards investing in ETF’s until the end of the year.

So I have invested again in the ETF I already have in my portfolio, which is iShares EURO STOXX Select Dividend 30. I like this one a lot as it covers most of the strong dividend payers in Europe.

But again why did I change my focus more on ETF’s rather than on single stocks?

Well the main reason is diversification, currently I am mainly invested in US stocks, and ETF’s are a good tool for doing that. By having this ETF I am now invested in stocks from France, a couple of companines from Germany etc. Buying each stock individually would be of course more fun but it would be also very costly and getting the tax refund includes some administration work I do not have with the ETF.  Currently my ETF position has a total share of around 8% of my portfolio, I want to increase that share to at least to 20%, in other words I need to invest another 8 000 EUR in ETF’s until the end of the year.

But to be clear investing in single stocks is always my main focus and if there are stocks at good prices around I will not hesitate to invest in them. Currently I have an eye on AT&T as it is getting closer and closer to my entry point of 36 USD and when you have a look at my watch list you can see that it mostly consists of great companies, some of them I already have but there are some I do not have in portfolio so far.

So enough the words how much did I invest?

All in all I bought 70 units at a price of 20.54 EUR, based on yearly payout of 0.98 EUR it will add 68.87 EUR before tax to my annual dividend income. In total I have now 210 units of this ETF in my portfolio, the next pay out will be on the 17th of July with a total payout of 0.6904 EUR per unit. So in July I will receive a total of 144.98 EUR before tax. Yes you are right investing is great :)!!

My next ETF I will invest in will be the following one:

  • iShares Dow Jones Asia Pacific Select Dividend 30 UCITS

It covers a market I am not invested in so far and it includes several companies from Australia. The total payout per year is currently at  1.55 EUR per unit with a price of 30.27 EUR per unit. The next payout will be in September and I am planning an investment of around 100 units.

My new dividend income

Before taxes my projected full year dividend income is now at 1 973.64EUR with a yield on costs of 3.91% and after taxes it is at 1 412.20 EUR with a yield on costs of 2.80%. That is an average of 117.68 EUR per month, which is still not a huge number but compared to where I was a year ago this number feels really great and I am getting closer to my projected full year dividend income of 1 700 EUR. In the chart below you see that the numbers are increasing month by month but considering the weak USD the increases are a little bit slower than expected. But over the long haul it shouldn’t matter that much anymore.

Development of my projected dividend income

Seeing the graph going up and up, gives you a real good feeling about investing and for me this is the most important chart, it is not that important how much my stocks are valued as I am not selling them anyways…

Please be aware this number might vary considering the changes in the exchange rates.

What do you think about the ETF? Do you also have it in your portfolio or are you considering buying it?

Disclosure: Long iShares EURO STOXX Select Dividend 30

I do not recommend any decision to the reader or any user, please consult your own research. Thank you for your understanding.

7 Comments

  1. Interesting shift of investment choices. I do agree that you get a lot of diversification outside the US and with a great allocation. I may eventually look into a dividend paying ETF. How much are the fees?

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