I last updated on my shares portfolio in March. Since then I have made a few acquisitions - Booker, Berkeley, DS Smith, Hargreaves Lansdown and just yesterday, IG Group.
The portfolio has therefore expanded to a total of 23 shares and I have allocated a further £1,500 to each of the additions making a total capital input of £34,500.
Although this is demonstration income portfolio, it mirrors my own holdings in all aspects except weighting for each share. As with my investment trust holdings, I withdraw most of the income from my shares for living expenses. With this demonstration portfolio I will reinvest the income at the end of each year either into an additional holding or recycle the income generated into one of the existing shares.
Performance since the start of the year has been extremely mixed. Several shares have struggled to gain momentum since the last update in March - notably Glaxo, Diageo, IMI, Tesco and easyJet. However, there have been a few positive gainers - Unilever, Reckitt, Next and Legal & General
At the close of business yesterday, the FTSE 100 was 6775 - up 2.4% on March 2014.
The effect of the additions in recent months means it is difficult to make an accurate comparison. The only way to do this would be to unitise the portfolio. However, leaving aside these additions, there is no doubt the portfolio has lost ground since March and its a little disappointing to see the reduction in the capital value.
Having said that, the dividend income is the most important aspect for me and this continues to roll in very much as expected. Most constituents have delivered above-inflation uplifts this year, and several have increased the dividend by over 20%. The average for the whole portfolio is 12% which should make quite a difference to income by the end of the year. As the pay-out levels increase, the capital value - share prices - should follow.
Here’s the current portfolio -
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As ever, slow & steady steps…..