I have had some messages recently asking if the post I have on my portfolio is still up to date. When I looked, it really isn’t! So, I thought I would do an updated post. I probably will do a portfolio update like this twice a year. As I don’t have the biggest amounts to invest, it doesn’t change that much. My dividend income reports are some of my most read posts, which makes me so happy as I love writing them! But to understand that process you have to be able to see what my portfolio looks like. So, here is it as of March 2020.
I started my stocks and shares ISA back in November 2015 and received my first dividend payment in February 2016. When I first started, my portfolio was incredibly small, but by adding savings consistently every month, it has grown in size and my dividend income has grown as well. I am very much a slow and steady investor.
My initial process was to only buy holdings in individual companies but I soon came to realise that this was incredibly risky! So I did more research and reading in my spare time and looked at various funds to add to the mix. My strategy at the moment is to have 50% funds/40% shares/10% cash. I need to have more of a cash reserve to actually have this balance but it’s fairly close.
Although, as of the past two weeks this has swung back and forth a lot. I do think that the markets are going to be quite folktale for a while. However, it is only a loss if you sell on that day. As I intend to hold these investments for the next twenty years or so, I will continue to invest with my strategy. And maybe not check quite so often!
So, this is my current holding, split into shares and funds:
This are my share holdings. I have highlighted the two holdings that doesn’t pay any dividend income – Sirius Minerals and Kier. Sirius Minerals was a bit of a gamble and it hasn’t paid off; they have been bought out by another company and the shoes will be absorbed by them. I am at a small loss for these. You live and learn! Kier group have paid dividends until recently, so I’m hoping this is just a blip for these I got these cheap too, so I will wait and see. Every other holding pays out dividends – most of them are twice a year and GlaxoSmithKline is every quarter.
These are the funds in my portfolio, at the moment. All of these pay out once a year so that payment tends to be a little higher. My biggest payout from a single holding to date is from the Vanguard FTSE UK All Share Index, which pays out in December. These are also a lot less risky then having holdings in an individual company. That’s what I am aiming to have 50% of my portfolio in funds.
At the moment, all dividend income received is reinvested, but it’s nice to know that we could cover a significant bill using this. Because my holdings are within my stocks and shares ISA with Hargreaves Lansdown, I don’t pay any tax on them either. As I wrote about the effect of the magic snowball, mine is beginning to move slightly. By reinvesting the dividends, it’ll only create more income. I believe that continuing to live a frugal lifestyle and save as we go along will see us right in the end. I hope this is inspiring someone else to begin their frugal journey. If we can do it, anyone can! We are not depriving ourselves of anything, just making purposeful choices and it’s beginning to pay off. Literally!
Finally, I am on track this year to earn £1,300 from dividend income. How amazing is that!? I am aiming for £1,600 in dividends in 2020, but at the moment I haven’t invested enough to hit that. Some of the bloggers I follow earn that a month, but dividend investing is a slow and steady game, unless you have a lot of money to put in up front. I am going to plod along adding to my portfolio and seeing it grow. But, I have to add, this is not a personal recommendation to buy these; I’m just showing you what I own in my portfolio. I provide up-to-the-minute updates over on my Patreon so make sure you join me over there.
Do you have any investments? Do you own any of these? I’d love to hear from you!
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Whilst dividend income is lovely- do you think its worth chasing over portfolio growth? Maybe I’m just totally boring and just follow index funds with reinvesting dividends (when they do get paid).
I have some investments in Ethical Investments Australia, long term, long term, especially atm.
Im concentrating on the funds portion of my portfolio at the moment. I have alerts sets so it tells me when its at a price I’m willing to pay which seems to be happening a lot at the moment good for buying but I’m looking forward to them going back up.
What other bloggers do you read id love to check them out too.