How I am building my DGI portfolio – Update #2

If you have been following this blog on a recurrent basis you will have learned by now, that I am actively trying to pursue a financial independence strategy. I did my first post on my portfolio of listed and unlisted shareholdings some time back, which you can find here; How my DGI portfolio performed in 2019.

Since then, I have added a number of additional positions to my portfolio, and I have also found the time to sit down and do a proper visual overview of my current portfolio. Currently, my portfolio consists of the assets you can see in Figure 1 below. It is a combination of listed stocks, and a couple of unlisted stocks in solar power and real estate. Additionally there is a single solar project in a limited partnership.

Since the last update, I have added the following positions;

  • Sydbank – 400 shares
  • Nordea – 1.000 shares
  • A.P.Moller Maersk – 1.000 shares
  • ISS A/S – 250 shares
  • Topdanmark A/S – 100 shares
  • Matas A/S – 1000 shares

This brings the total cost of my portfolio to roughly 2.75M DKK. My strategy for the last couple of years has been to slowly add a couple of rather large unlisted investments in solar and real estate, and then slowly build out additional positions in listed stocks where I believed I could find dividend value for the long term. So far it is working ok, with the exception mainly of Danske Bank, which I started accumulating a bit too early around 135 DKK and at yield levels of around 7% at the time.

Figure 1. Overview of portfolio cost and pct. diversification.

Portfolio cost 09092019

My current market value is roughly 2.66M, so a slight decrease, mainly due to the too early purchases of Danske Bank. For the last 6 months or so, the focus of my DGI portfolio building has been to add additional positions with a decent combination of dividend levels, and trying not to buy at the top, as I do believe a lot of stocks are priced very high at the moment.

Hence, currently stocks in banks, insurance, security, and a single retail position, along side the real estate and energy related investments.

For the rest of the year, my expectation is to continue to add shares to the tune of roughly 50k DKK, or approx. 8.000 USD pr. month. I am still searching for additional high yielding dividend shares to add, but I am also considering increasing in a number of the ones I currently have. Mainly in G4S and Topdanmark.

One of the reasons I have been able to make the significant portfolio build in the last couple of months or so, is that we had a slight windfall of money from the sale of our balcony, as you might recall if you are a recurrent reader, otherwise you can find it here; We sold our balcony – I know – weird?  🙂

Figure 2. Overview of current portfolio market value and individual positions.

Portfolio market value 09092019

Turning to dividends, I have so far realized 33.295 DKK in 2019. As my 3 biggest positions in solar and real estate will not be paying dividends until next year in 2020, there will be a significant increase in expected dividends. Applying an assumption of same dividend levels for my listed stocks for next years as this year, I am currently expecting dividend payouts in the order of 130k DKK or approx. 20k USD next year.

The dividends will most likely increase a bit above this level, as I will be adding to the portfolio every month. With the current expectation of dividend levels, this will equal roughly 4.95% dividend yields next year for the entire portfolio. Given the current low interest rate environment we are in, I view this as pretty much OK.

Figure 3. Historical and expected dividends.

Dividend history and expection

All in all, I am fairly happy with the way things are progressing, especially, as the dividend levels we are quickly approaching, will be roughly enough to cover the fixed cost we have in our household for housing, utility and insurance, on a monthly basis.

~This post contains affiliate links, meaning, at no additional cost to you, if you click through an affiliate link and make a purchase, I may make a commission~


Please check out these excellent ressources for adopting a financially independent & minimalistic lifestyle;

 

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