With record savings at 2017 Q1 it’s time to wrap up our purchases that I have made during 2017 Q1. And there was some 🙂
In total we invested 1.112 EUR during 2017 Q1. This is much more then planned 200 EUR/mo investments. We agreed to invest and here is where we have allocated it:
586 EUR – On February bought 5 shares of Jonson & Jonson paying 117,2 USD for each share. This worldwide Healthcare giant took my attention with quite stable growth in all 3 important lines – Sales, Net income and dividends, with estimated growth in the future. Also very strong balance sheet – Equity 50% / NetDebt/EBITDA negative due to Cash 42bn USD bigger then 27 bn USD Debts / Cash/Share – 5.5 USD or x1.7 dividend. Still rational P/E of 19,7. Company pays quarterly dividends of 0,8 USD/share yielding to 2,7%. This is a bit low if compared to my other investments, but you have to bear in mind that this company has increased it’s dividends for more then 50 years and intend to do it for the unlimited years to come. Dividend payout ratio is at 54% so it is in acceptable level. Company also buy-back it shares and decreased share outstanding from 2.877m to 2.789m of by -3%. This investment will contribute with +16,0 USD dividend income annually.
586 EUR – On March invested into another US company and bought 17 shares of Intel paying 35,31 USD per share. Also worldwide tech company that mainly involved into PC manufacturing. Although company is a bit struggling in growth of Sales and Net income in past few years but dividends growth is quite stable. Also strong balance sheet – Equity 58% / NetDebt/EBITDA 0,4x (25-17/21)/ Cash 17 bn USD – 3.6 USD/share or x3,3 dividends. P/E is at better rate of 16,7. Company pays 0,27 USD/share dividends yielding to bit better 3,1%. Payout ratio 51% at good level. Share buy-backs decreased share outstanding from 5.097m to 4.875m of by -4%. Somewhat weaker part of this company is its smaller dividend increase history of 13y. This investment will contribute with +18,4 USD dividend income annually.
So these two investments will increase our annual passive income by +34,4 USD.
Our investment value has increased to 21,1 kEUR, so only 3,9 kEUR away from our Y2017 Goal #2. Totally reachable if we stick to our investment plan of 200 EUR/mo +170 EUR/mo investments into pension funds. This amounts to 3.3 kEUR in next 9 months + some dividend reinvestment.
So as you understood our investment portfolio was diversified by by US companies shares that pay stable and growing dividends. Yes their yield is lower but they are much more stable and has very long stable dividend increase history.