Welcome to September 2022 overview, an atypical month that marked a turning point in our portfolio, this month there were no movements in the portfolio, there was an earthquake.
To those who follow the stock market, there is no need to say how we are doing this year 2022, but especially in September the global indices plummeted, marking annual lows.
We are in a bear market, and some experts even say that the S&P500 may drop another 40%, nobody can predict the future, but with the Federal Reserve interest rate hikes, the war in Ukraine, energy crisis, … it is Better to tread carefully when it comes to equities.
This year 2022 we have abused the margin a lot and that has its risk and it is none other than that there will be sudden drops and that the so-called margin calls will jump, it was our fear and only concern and this month one or another materialized and already decided to prune well the portfolio and leave the margin at a minimum so that we will soon be free and can enjoy the juicy dividends.
Note: If you do not know what a margin call is or want to expand your technical knowledge about the world of investment, you can consult the glossary of stock market terms.
Consequences on our portfolio
What happened this month has several consequences for our portfolio:
- The valuation of our portfolio plummeted due to two factors: company valuations and sales (some due to margin calls and others due to the pruning we did).
- The profitability of our portfolio increased a lot in terms of dividends, we have removed all the companies that gave 4 or less percent of yield, in normal conditions we would not have done it but since we used a lot of margin (money borrowed by the broker) and interest rates have skyrocketed due to the recent rate hikes we prefer to get out of some companies that give us low returns now.
- We lose diversification in companies, our portfolio decreased considerably in number of companies, (since we are going in the long term, we are not too concerned).
- The expected dividends of our current portfolio have decreased but they are still good for the short time that we have been investing.
- The percentage of some companies skyrocketed in our portfolio (Enagas, for example, weighs more than 20%).
Our idea is to return to many of the companies that we have sold but once we release all the margin and if possible at good prices.
Learned lesson: “Do not abuse margin at en Interactive Brokers” 🙂dividendos.info
September 2022 Movements
Like every month, we are going to split the movements of the month into three blocks: purchases, sales and dividends to make reading more enjoyable.
Few purchases this month, a rotation in Spain and two purchases in the United States to expand monthly dividends. These were the purchases made in September:
- 450 x Enagas (ENG)
- 840 x AGNC Investment (AGNC)
- 130 x Main Street Capital (MAIN)
This month has undoubtedly been the month of sales 🙁 some of them executed after notice of margin call, others to lower margin on purpose and others by rotation (e.g. we rotate Logista for Enagás)
- 10 x Apple (AAPL)
- 140 x 3M (MMM)
- 12 x Pepsico (PEP)
- 200 x Gladstone Capital (GLAD)
- 500 x Ebro foods (EBRO)
- 159 x Iberdrola (IBE)
- 1000 x Telefónica (TEF)
- 12 x Johnson & Johnson (JNJ)
- 50 x Kimberly-Clark (KMB)
- 435 x Altria (MO)
- 50 x Starbucks (SBUX)
- 12 x IBM (IBM)
- 10 x McDonald’s (MCD)
- 30 x T Rowe Price (TROW)
- 40 x British American Tobacco (BTI)
- 20 x Mondelēz International (MDLZ)
- 19 x Realty Income (O)
- 150 x National Health Investors (NHI)
- 20 x Procter & Gamble (PG)
- 100 x Restaurant Brands International (QSR)
- 800 x AT&T (T)
- 400 x Logista (LOG)
- 12 x Abbvie (ABBV)
- 2 x Clorox (CLX)
- 20 x General Mills (GIS)
- 50 x Intel (INTC)
- 22 x Kellogg’s (K)
- 34 x The Kraft-Heinz (KHC)
- 50 x The Coca-Cola Company (KO)
- 4 x Microsoft (MSFT)
- 50 x Omega Healthcare Investors (OHI)
- 34 x Pfizer (PFE)
- 10 x Rio Tinto (RIO)
- 50 x Unilever (UL)
- 10 x ExxonMobil (XOM)
In terms of dividends, this September we have received a total of 20 dividends, all of them from American companies. These have been the dividends received in September by country and ordered by payment date.
- We do not receive dividends
🇺🇸 United States
- Enbridge: $104.51
- Intel: $18.25
- Unilever: $21.48
- Johnson & Johnson: $13.56
- Pfizer: $12
- Microsoft: $2.48
- Walgreens: $24
- ExxonMobil: $8.8
- AGNC Investments: $150
- IBM: $19.8
- 3M: $208.6
- Kellogg’s: $12.98
- Main Street Capital: $63
- Realty Income: $12.38
- McDonald’s: $13.8
- Rio Tinto: $26.65
- Kraft Heinz: $13.6
- T Rowe Price: $60
- Gladstone Capital: $33.75
- Pepsico: $13.8
In September 2022 we receive 0 euros of gross dividends from Spanish companies (before paying taxes).
➡ Dividends in euros represent an increase of +0% compared to the same month of the previous year.
American companies contributed to us in September 2022 a total of +833,44 US dollars of gross dividends.
➡ Dividends in US dollars represent an increase of +255.4% compared to the same month of the previous year.
Note: the percentages above are calculated using this tool.
September 2022 overview
As we mentioned before, our portfolio in September decreased due to some margin calls and the recent pruning we did to free up margin, at the end of September our portfolio had a decline of -57.16% compared to last month and reaches an estimated value of +96,317.4 euros.
The positive note, to say the least, is that the gross dividend yield is +10.37% over the current valuation of our portfolio.
This month we have not published any new company on the web, we only update the data of the companies already published. We have published a new page where you can check past dividends called dividend history.
This month we have met another of the goals set at the beginning of the year and that is the contribution to the pension plan.
- Contribute 1500 euros to the pension plan ✅
We have also failed to meet an objective due to recent sales and that is to reach 130 thousand euros in valuation. We doubt that it will be achieved by the end of the year, but it is not something that worries us.
Another month that we left behind, there is only one quarter left to close the year 2022, a negative year on the stock market but that also gives us opportunities to enter good businesses at knockdown prices.
September is usually a month of falls but this year they were primed well. The Ibex 35 closes its worst quarter since the pandemic. In the United States, the SP500 fell 7.9%, the Dow 7.2% and the Nasdaq 9.1%.
We now feel freer, with less debt you always sleep better 🙂 We will continue to focus in the coming months on eliminating the margin to be able to enjoy the dividends either for ourselves or to reinvest them and that the ball continues to grow.
And how was it for you? Did you take the opportunity to buy and expand your portfolio? How do you newbies take the recent crashes? You can leave a comment at the end of the post with your thoughts.
We hope that your portfolios withstand the downpour and do not weaken too much and most importantly that your dividends continue to grow.
And here is the September 2022 overview, until the next investors!