Rate my portfolio

Hi all!

I was wondering about your opinions on my dividend growth portfolio. Currently my portfolio yield 3.5% with an estimated dividend growth rate of 7.2% anually. I have a 20+ year time horizon. My portfolio in alphabetical order along with the relative percentage of the total portfolio:

  1. Abbvie - 10%
  2. AllState - 3%
  3. Apple - 5%
  4. AT&T - 3%
  5. Bristol-Myers Squibb - 9%
  6. Cummincs Inc. - 3%
  7. Huntington Ingalls - 2%
  8. Intel Corp. - 9%
  9. Johnson & Johnson - 8%
  10. Ahold Delhaize - 3%
  11. Kroger - 1%
  12. PostNL - 4%
  13. Shell - 4%
  14. Snap-on - 3%
  15. Starbucks - 3%
  16. Verizon - 7%
  17. VICI properties - 4%
  18. Visa - 8%
  19. Lockheed Martin - 12%

On my short-term wishlist:

  • ASR or NN Group (not sure which one yet).
  • Unilever
  • Mondelez

Looking forward to your replies!

3 Likes

Nice portfolio !

I buy also stocks with a lot of dividend! So some of those stocks that you have, i have those too!

It looks :+1:

3 Likes

I personally don’t have much knowledge about which dividend stocks are good or not. The only one I personally would be a little bit careful about is Intel.

I personally think a tech stock giving almost 3% dividend is a recipe for disaster, seeing as tech needs almost all their money in development and innovation. (Unlike stocks such as coca cola) And by giving away 3% dividend, they are basically handicapping themselves.

For now they are still doing ‘okay ish’, but seeing as their biggest competitor AMD has grown more than 1600% in the past 5 years and now has a market cap that almost equals theirs, I wouldn’t be surprised if the stock will take some massive hits in the coming years.

(ofcourse this is all my personal opinion)

4 Likes

Thanks for your feedback Mixer.

Intel is actually more of a value play although the 3% yield is obviously driven by the low current valuation. With a payout of +/- 20% there is still lots of money available for reinvestment. AMD is growing a lot indeed, but the fact that Intel’s revenue is 10x the revenue of AMD with the same marketcap I think it’s safe to say AMD is expensive priced;)

With the current chip shortage and increase of semiconductor needs in the future I think there is room for growth for the entire semiconductor sector in general. There is some risk involved with Intel as there a turnaround required to keep being competitive in the future, but for me it’s a superiour investment compared to it’s peers Nvidia (PE of 100+) and AMD (PE of +/-50). One company I want to invest further is Broadcom. That seems like a solid company as well.

3 Likes

Ye I think this is a philosophy difference in investing.

I’m personally fairly negative about Intel, Because a PE of 10 in one of the biggest growing sectors tells me they haven’t stepped up their game in the last few years, and I personally don’t see any movement towards improvement (especially not by throwing away 3% dividend, that could’ve gone to making better products). With a 3% dividend it feels to me like the company is literally saying, “We don’ t know what to do with money, so here take it”, while I personally think the philosophy of a tech company should always be to use (almost) every bit of money they can get, back into the company.

As a side note to the NVIDIA and AMD PE, I prefer to buy my tech stocks a little bit higher in price, but also have the safety that their company has a solid foundation when it comes to innovation and improving (especially in the tech scene).

But again I want to stress that I’m so critical about Intel, because its in the tech sector, which is a highly competitive field in terms of innovation and making better products year after year. And the 3% dividend says something about the philosophy of the company in general.

5 Likes

I own both Unilever and Mondelez.

Unilever stock price you may have noticed has been dropping for the past few months. Not great for me, but the stock price is becoming very attractive if you’re looking for a nice consumer staples giant with a nice dividend. :+1:t2:

3 Likes

Yeah, I’ve been looking at Unilever for some time now. It seems that €45 is the bottom right now but preferable I want it a bit cheaper as I have questionmarks on their pricing power… what is your perspective on this?

2 Likes

Many of their brands are household names. I wouldn’t worry too much about that.

The sale of their tea business, with brands like Lipton, and which has been confirmed now, is gonna bring in a nice pile of cash too. :ok_hand:t2: The market seems to reach favourably to the news today, it’s up 1,23% at time of writing. Long time since it made such a move lol

2 Likes