Dividend Portfolio Jumps to £470K: Quarterly Update

Summary

In this video, the investor reflects on their journey starting with £5,000 in 2009, evolving strategies, and current portfolio performance. They discuss investments in various sectors, ETFs, and plans for future investments, highlighting a 10.9% return in the first half of 2024 and a total net gain of 83% since inception.

Takeaways

• 💼 Started investing journey in 2009 with £5,000 and regular monthly contributions.
• 💻 Used a laptop bought for £388, which has paid for itself 552 times over 15 years.
• 📉 Initial investments were in large-cap UK stocks due to platform limitations.
• 🌍 Recently diversified into global ETFs and a range of sectors.
• 💊 Invested significantly in the chemical, mining, renewable energy, utility, house builders, consumer goods, food and tobacco, retail, brokerage, oil and gas, and pharmaceuticals sectors.
• 🏠 Holds a large amount in real estate and financial sectors, particularly banks and brokerage firms.
• 💡 Focus on ETFs and specific sectors like aerospace and IT due to their high performance.
• 📈 Portfolio value grew from £415k at the end of 2023 to nearly £472k by mid-2024.
• 💸 Receives over £1,300 a month in dividends, reinvesting most of it.
• 🔮 Plans to invest more in ETFs and specific high-performing companies while rebalancing the portfolio.

Q & A

When did the investor start their journey in the stock market?

The investor started their investing journey in 2009.

What was the initial lump sum amount the investor used to start investing?

The initial lump sum amount used to start investing was £5,000.

What was the primary purpose of the investor's old laptop purchase 15 years ago?

The primary purpose of the old laptop purchase was for buying shares and starting the investor's investing journey.

What was the cost per trade back in 2009 when the investor started?

The cost per trade back in 2009 was £12.25.

What has changed in the availability of trading platforms since the investor started investing?

Since the investor started investing, commission-free apps like Freetrade and Trading 212 have become available, which were not present back then.

Which sectors mentioned in the script have shown a positive performance for the investor this year?

The sectors that have shown a positive performance for the investor this year include the Retail (Tesco), Brokerage Services (IG Group and London Stock Exchange), Oil and Gas (Shell), Pharmaceuticals (AstraZeneca and GSK), Information Technology, Aerospace, and Banking.

What is the current largest holding in the investor's portfolio?

The current largest holding in the investor's portfolio is Rolls-Royce.

What is the investor's strategy regarding dividend-paying stocks and ETFs?

The investor keeps some dividend-paying stocks and ETFs outside of the ISA to protect the dividends, such as the S&P 500 ETF and the all-world ETFs VWL and VHYL.

What is the investor's view on the renewable energy sector, specifically wind energy compared to solar?

The investor believes that wind energy will be more profitable than solar in the UK due to the country's usual weather conditions and has moved completely from solar to wind energy investments.

What was the investor's total net gain from their investments as of the end of June 2024?

As of the end of June 2024, the investor's total net gain from their investments was just under £214,000.

What is the investor's strategy for the coming months in terms of new investments and rebalancing the portfolio?

The investor plans to invest more into ETFs, especially VWRL, buy back the AstraZeneca shares sold, keep an eye on Unilever for potential additional investments, and is considering a new company, 3i, for investment.