Portfolio Update (March 2016)

The stock market seems to have recovered from the big drop in January. The two of the three major indices had closed above the close of 2015. Stock prices have climbed higher with more investors entering the market, pushing my portfolio overall PnL into the green zone.

The stock market seems to have recovered from the big drop in January. The two of the three major indices had closed above the close of 2015. Stock prices have climbed higher with more investors entering the market, pushing my portfolio overall PnL into the green zone.

Dividends

For the month of March, 3 companies from my portfolio paid dividends. They include:

  1. Johnson & Johnson (NYSE: JNJ) on March 8 – $6.75
  2. Home Depot (NYSE: HD) on March 24 – $5.52
  3. Pepsico, Inc (NYSE: PEP) on March 31 – $7.03

All dividends paid for the month were reinvested. Dividend for PEP was paid on March 31 and reinvested on April 1.

Total year-to-date (YTD) dividends, as of March 31, is $34.36 or 0.60%, excluding the dividends that were reinvested.

Stock Symbol YTD Dividends
Home Depot, Inc. HD $5.52 0.55%
Johnson & Johnson JNJ $6.75 0.74%
Automatic Data Processing, Inc. ADP $3.18 0.35%
Clorox Co CLX $6.16 0.63%
PepsiCo, Inc. PEP $7.03 0.72%
Abbott Laboratories ABT $5.72 0.58%
Total Dividends $34.36 0.60%

Stock Holdings

Stock Symbol Shares Cost Basis
With Dividends Without Dividends
Home Depot, Inc. HD 8.029 $1,014.19  $1,008.67
Johnson & Johnson JNJ 9.044 $924.43  $917.68
Automatic Data Processing, Inc. ADP 11.027 $904.19  $901.98
Clorox Co CLX 8.034 $977.82  $973.51
PepsiCo, Inc. PEP 10.048 $978.32  $971.29
Abbott Laboratories ABT 22.104 $989.04  $983.32
Total Investment Amount $5,775.44  $5,756.45

Profit & Loss

HD had seen a swing into profit in March as compared to the previous month while ABT continued to be in the red.

Stock Symbol Profit/Loss
Home Depot, Inc. HD $57.12 5.63%
Johnson & Johnson JNJ $54.13 5.86%
Automatic Data Processing, Inc. ADP $85.04 9.41%
Clorox Co CLX $34.95 3.57%
PepsiCo, Inc. PEP $53.51 5.47%
Abbott Laboratories ABT $64.43 6.51%
Total Profit/Loss $220.32 3.83%

Portfolio Outlook

The companies in my portfolio looks healthy and are recovering. There is nothing to be worried about for the time.

Portfolio Update (February 2016)

The stock market did not do well in the first month of 2016 but in February, the outlook of the market look more positive with investors coming back into the market to buy stocks that are on discount. What impact has it got on my portfolio and how is my portfolio looking now after the 9% plunge in the Dow Jones Industrial Average in just two weeks in January.

Realised that I had actually forgotten to do an update for the month of January as I was busy preparing for Chinese New Year in the early part of February.

This year did not start off very well and we had seen a major sell-off in the month of January with China’s major stock exchanges triggering “circuit breakers” consecutively and the Dow Jones Industrial Average plunging 9.52% from the last trading day of 2015 till mid-January 2016.

In February, we have seen a partial recovery of the stock index and it looks like the investors are coming back, picking discounted stocks to add into their portfolio.

Dividends

For the month of January, I had received $3.18 worth of dividends from Automatic Data Processing, Inc. (NASDAQ: ADP) while Clorox Co (NYSE: CLX) and Abott Laboratories (NYSE: ABT) paid their dividends of $6.16 and $5.72 respectively in February.

Total year-to-date (YTD) dividends, as of February 29, is $15.06 or 0.26%, inclusive of the dividends that were reinvested.

All the dividends were reinvested.

Stock Symbol YTD Dividends
Home Depot, Inc. HD $0.00 0.00%
Johnson & Johnson JNJ $0.00 0.00%
Automatic Data Processing, Inc. ADP $3.18 0.35%
Clorox Co CLX $6.16 0.63%
PepsiCo, Inc. PEP $0.00 0.00%
Abbott Laboratories ABT $5.72 0.58%
Total Dividends $15.06 0.26%

Stock Holdings

Stock Symbol Shares Cost Basis
Home Depot, Inc. HD 8.00 $1,008.67
Johnson & Johnson JNJ 9.00 $917.68
Automatic Data Processing, Inc. ADP 11.027 $904.19
Clorox Co CLX 8.034 $977.82
PepsiCo, Inc. PEP 10.00 $971.29
Abbott Laboratories ABT 22.104 $989.04
Total Investment Amount $5,768.69

Profit & Loss

Most of the stocks within my portfolio managed to recover and entered into the profit zones with the exceptions of Home Depot, Inc. (NYSE: HD) and Abott Laboratories (NYSE: ABT). Overall health status of the portfolio looks healthy.

Stock Symbol Profit/Loss
Home Depot, Inc. HD $15.71 1.56%
Johnson & Johnson JNJ $27.86 3.04%
Automatic Data Processing, Inc. ADP $29.68 3.28%
Clorox Co CLX $37.84 3.87%
PepsiCo, Inc. PEP $6.71 0.71%
Abbott Laboratories ABT $132.73 13.42%
Total Profit/Loss $46.15 0.80%

Portfolio Outlook

Although Abbott Laboratories had fallen 13.4% from my average purchase price, the stock price is mainly affected by the unfavourable exchange rate, lowering their earnings. I will continue to monitor the situation and decide if there is a need to readjust the portfolio.

Johnson & Johnson (NYSE: JNJ) had recently also made headlines when they admitted to some of their products contains cancer causing ingredients. However, JNJ had cited that they had used minimal amounts of the ingredients. Although the admitting of the use of cancer causing ingredients will not do good on the company outlook, I will continue to hold on my portfolio and judge if there will be a need to invest the money into another company.

Stock Investment in 7 Easy Steps

Stock investing is a fairly simple task. Many people who just could not get started may just be because they do not have the motivation to do so. Take a look at these 7 simple steps to stock investing.

Stock investing is a fairly simple task. Many people who have not started investing will usually say that either they do not know how to or that stock investing is very hard to start off. I had personally been through that phase and understand fully what it takes to start off in the journey of stock investing.

After being on this journey for a few years now, looking back, I see that stock investing is actually a simple task. It just needs 7 easy steps to start investing.

Know What to Invest

There are many stocks available for investing but what should you invest in?

Understanding your investment objective is important. Are you investing for your retirement or do you just want to earn more money? What is your investment period?

Stocks can be broadly be classified into two kinds: Growth and Dividends.

Growth stocks are company stocks that tends to grow in capital value than yield in dividend payouts. Dividend stocks on the other hand has better yields than the growth in capital value.

If you are currently young and have a good number of years before retirement, you can consider owning a portfolio with more growth stocks. However, as the years goes by, do readjust your portfolio accordingly to increase more dividend stocks in your portfolio.

Finding the Right Broker

There are many brokers available and choosing the right one to put your money with can be confusing. If the wrong choice have been chosen, changing a brokerage firm can be tedious and might even be a fee to transfer your current holdings between brokerage firms.

So how to know which brokerage firm is the right one?

First and most importantly, having a regulated brokerage firm is an assurance that your money is safer with them as compared to an unregulated one.

Fees and commissions are paid to the brokerage firms for the services they provide to you and these fees and commissions can shrink your profits.

Regulated and fees are not just the two things to note when finding the right brokerage firm to trade with. Do take some time to compare between various brokerage firms before deciding who you would want to trade with.

Opening an Account

After you find the right brokerage firm, naturally the next step will be to open an account with them. This is the most “difficult” step of the 7 steps.

Before I opened my first investing account, I had already done my research, know what I want to invest in, derived a strategy, etc. But what I was missing out is the action of going down to the brokerage firm that I had chosen to open my account. There was so much resistance until a friend of mine had to drag me down and opened my first account!

Understanding the Business

Investing is like buying a business. A business man would have already done his homework to understand the business well before parting their money in buying the business.

Likewise, as an investor, we should understand what the business does, what is its prospect, etc, before clicking on the “buy” button.

This step should be done no matter how big, or small, the investment is.

Selecting the Company

After going through the business of several companies, selecting the company to invest in is the next step.

This is the time when you will have to weigh the pros and cons between buying two companies. Reminding yourself your investment goals will be important especially if you are choosing between companies from different industries.

Once you understand what each and every company business is about, it should be easier to decide which company to invest in. To make things easier, just do a comparison between two companies at a time. Have a checklist on what is important to you.

Buying the Stock

The easiest step in the whole. Select the stock to buy, enter the quantity and price to buy and click on the “buy” button.

Reinvesting the Dividends

In the event the stocks in your portfolio do pay dividends, it would be better to reinvest your dividends to purchase more shares.

The benefits of reinvesting your dividends can be found in one of the previous post here.

The Bottom Line

Stock investing is not a task which is not achievable. In fact, stock investing can be relatively simple. Just follow the 7 simple steps and you will be on your way to invest for a better future.

Are there any other steps to be included? Do let me know by commenting below.