Well, the time has come to update the Freedom Fund once again as we start another month. The Freedom Fund is my portfolio, and I think it’s aptly named. My portfolio is my way to freedom; freedom from a job I don’t desire to purchase goods I don’t need to impress neighbors I don’t care about. This journey is all about freedom and flexibility. One day the dividend income this portfolio generates will fully replace my day job’s income and my time will be completely my own. What could you possibly want to own more than your time?
I feel extremely fortunate and thankful that I’m able to post these updates every single month which shows the power of monthly contributions to investments because of the high savings rate I maintain. It shows how a relatively large sum of money can be built through the power of time, patience and perseverance.
It’s important to keep in mind that while updating the overall value of my portfolio is important for historical reference and for purposes of keeping track of total return, my main focus is on the rising dividend income stream the Fund provides.
My Freedom Fund had a very productive September, reaching record heights in value, invested positions and dividend income (which I’ll discuss in a later post). The market continues to break records, yet I still continue to do my best to add high quality investments to the portfolio when valuations make sense and fundamental quantitative analysis and qualitative reasoning beget fresh funds.
It was another busy month for the portfolio. In all actuality, I had planned on being relatively inactive as I felt the values in the market were relatively few and far between. I started off September by adding to my burgeoning position in Realty Income Corp. (O) and then stayed on the sidelines for most of the remainder of the month. In a last minute burst of activity, I decided to sell off most of my position in Intel Corporation (INTC) after a sixth consecutive unchanged dividend announcement and deteriorating business fundamentals. I used the proceeds from that sale to initiate a position in BP plc (BP), a company that has been on my radar for quite some time. Finally, I capped the month off by investing in Baxter International Inc. (BAX) after a significant pullback in shares.
The current market value of the Freedom Fund stands at $131,084.63. This is an increase of 5.5% over last month’s published value of $124,203.41. A fantastic increase, and due not only to the addition of fresh capital to the portfolio via the purchases listed above but also due to a particularly strong market performance throughout September. I’d be much happier with a weak broader market and more compelling individual opportunities, but I continue to invest monthly into the most attractively valued equities I can find while also being mindful of the overall construction of my portfolio.
I’m currently invested in 41 companies. This is an increase since last month, due to the opening of new positions in BP plc (BP) and Baxter International Inc. (BAX).
These updates are mainly designed to show the increase in the value of the underlying equities I’m invested in, but the main purpose of investing in dividend growth stocks is for the rising stream of dividends over time. So with that said I don’t put too much emphasis on these monthly updates on the value of my portfolio. I think it is a good idea, however, to keep track of the rising (or falling) value of one’s securities and be aware of where they are in terms of the marketplace and whether or not certain stocks are attractively priced. It proves to be a useful exercise, for me at least, to update the values monthly. It gives me fresh perspective on which equities are performing well and which aren’t, and from there I can make educated decisions (based on further due diligence) on which stocks I’d like to add fresh capital to (while considering portfolio weight as well).
Full Disclosure: Long O, INTC, BP, BAX
How are your portfolios doing? Did you have a productive September?
Thanks for reading.
Photo Credit: Vichaya Kiatying-Angsulee/FreeDigitalPhotos.net