It’s time for my second portfolio review already! October has passed super fast and offered some great buying opportunities if one had the cash saved up. This October was said to be the worst October for a while. Stocks were down on the most part.
I’ll cut the boilerplate this time and without further ado, let’s get into it!
First Dividends!!!
October was a milestone month as I received my first dividends! The dividends this time came just from my REITs, namely VICI and Realty Income. Can’t really do much with that payment, but it’s definitely a start.
| Company | Ticker | Dividend | Dividend in € |
|---|---|---|---|
| Realty Income | O | $2.05 | 1.94€ |
| Vici Properties | VICI | $5.81 | 5.48€ |
| Total | 7.42€ |
Purchases
| Date | Company | Ticker | # Shares | Price per Share | Total Price | Total Price (€) |
|---|---|---|---|---|---|---|
| 3 Oct 2023 | ASR Nederland | ASRNL | 5 | 36.27€ | 181.35€ | 181.35€ |
| 19 Oct 2023 | Coca Cola | KO | 4 | $54.40 | $217.60 | 205.57€ |
| 19 Oct 2023 | Realty Income | O | 4 | $49.80 | $199.20 | 188.19€ |
| 19 Oct 2023 | Agree Realty Corporation | ADC | 4 | $55.00 | $220.00 | 207.84€ |
| 27 Oct 2023 | T Rowe Price Group | TROW | 3 | $88.20 | $264.60 | 249.80€ |
| Total | 1032.75€ |
ASR Nederland
In my last portfolio review I mentioned that NN Group got some litigations against them. That same thing affected ASR Nederland as well. The market reacted to the news and the stock price fell quite a bit, around 14% in a single day. I decided to add some more of ASR as the reaction felt too much. For now, I’ll be monitoring any news from ASR and NN Group. Happy with my purchase though, which got my average price down a little.
Coca Cola
Coca Cola is the brand that is known pretty much everywhere. And it’s usually my beverage of choice. I’ve always known, that if I’ll buy individual US stocks, I’d buy Coca Cola. And in a Peter Lynch way, I bought something I also consume myself. And feels now somewhat satisfactory to buy a Coke instead of Pepsi or some off-brand cola.
Coca Cola has been paying dividends since 1964 and raised its dividend for over 50 years, earning the status of dividend king. Coca Cola has also been able to pass higher prices on to consumers. In my opinion, Coca Cola is the superior brand compared to any other cola on the market. Therefore I expect good times ahead for Coca Cola, and me as a dividend investor. The yield on cost is around 3.4% which is lower than my target of 5%. Nevertheless, I consider KO to be one of the backbone stocks in my portfolio.
Realty Income
I introduced my thoughts of Realty Income in my last porftolio review. So I’ll just say: Realty Income under $50? Yes please.
In October, they annonced that they would acquire Spirit Realty Capital. This acquisition widens their diversification and likely enhances their stability. By combining forces, they can also reduce overall costs. However, I have not looked into this super closely and I’ll need to read up on it more. Stock price was down to around $46 after the announcement (and at the same time Spirit was up). Unfortunately, I didn’t have available cash in my brokerage account at that time…
Agree Realty Corporation
Realty Income is a large REIT and I think it might be even the 4th largest in the US stock exchange. Agree Realty in the other hand is like a baby brother to Realty Income. It has similar business and some overlap with Realty Income. They too have strong and stable tenants. But due to their size, expanding the business is somewhat easier. By ’easier’, I mean that acquiring 1 billion in real estate represents a proportionally larger increase for Agree Realty compared to Realty Income. Moreover, with the industry becoming increasingly consolidated, smaller deals may be easier to find.
Agree Realty is another of the monthly dividend payers and therefore nice addition to my portfolio. And the yield on cost is around 5%, right on the target.
T Rowe Price Group
T Rowe Price Group is an asset manager. They have a whopping $1.35 trillion in assets under management. The price has came down a bit YTD, currently around -12%, and is now priced at $95 per share. But I managed to snatch my initial position for ~$88, meaning I’m $7 up already. Though with 3 shares that is just $21 in total.
The price of T Rowe has been under pressure due to the financial markets. Bond yields have been rising sharply which will lead into the invested money to flow into bonds from stock baskets. This means that assets may move into asset classes where the management fees are typically lower. Therefore asset managers have less money in their investment baskets to generate fees from. I believe this will naturally balance out in the future as yields start to diminish again and the new inflow of cash will be directed into stocks.
T Rowe Price Group yields around ~5% in dividends. And it has had annually +12% dividend growth (CAGR) in 5 and 10 year time periods (according to Seeking Alpha).
Portfolio after October 2023
And here is the portfolio at the end of October 2023:
| Company | Share Count | Purchase Value | Current Value | Change in Value | % of Full Portfolio |
|---|---|---|---|---|---|
| Realty Income | 12 | 596.34€ | 531.36€ | -64.98€ (-10.90%) | 19.67% |
| ASR Nederland | 15 | 584.35€ | 528.00€ | -56.35€ (-9.64%) | 19.55% |
| Koninklijke Ahold Delhaize | 14 | 407.36€ | 392.00€ | -15.36€ (-3.77%) | 14.49% |
| VICI Properties | 14 | 469.51€ | 385.32€ | -84.19€ (-17.94%) | 14.27% |
| T Rowe Price Group | 3 | 249.80€ | 256.13€ | +6.33€ (+2.53%) | 9.48% |
| Coca Cola | 4 | 205.57€ | 211.17€ | +5.60€ (+2.72%) | 7.82% |
| Agree Realty | 4 | 207.84€ | 210.94€ | +3.10€ (+1.49%) | 7.81% |
| Lemonade | 18 | 252.20€ | 185.77€ | -66.43€ (-26.34%) | 6.88% |
| Total | 85 | 2973.87€ | 2700.69€ | -273.18€ (-9.19%) | 100.00% |
At the end of October I was down -273€ or around 9% on my invested capital.
At the end of October I had received 7.42€ in dividends. That is 0.023% out of my annual 32000€ target. Still a bit of a journey to travel!
And that’s it for this time. I’ll try to keep on posting semi-regularily to keep myself accountable.
How does your portfolio look like after October 2023? What were your highlights of the month?
If you liked the post please share your feedback on it. You can tag me in X @dividendgrowthQ.
Until next time!
With much love, Dividend Growth Quest
* Please note, the content of this blog is for educational and entertainment purposes only and should not be construed as investment advice. I am sharing my journey into dividend growth investing; I am not a financial specialist. I cannot guarantee the validity of the data presented. Do not take any action based solely on what you read.