Friday, 1 May 2020

#114 April Money Update

Income & Spending



Apr '20
In
Gross Income
$7,047.88



Out
Total Tax and NI
$2,068.68
Total Variable Spending
$1,443.10
Total Fixed Spending
$1,794.59
Total Short Debt Repayment
$0.00



Pre Fixed Savings
Net Income pre Fixed Savings
$1,741.51
Savings Rate (%) pre Fixed Savings
25



Post Fixed Savings
Fixed Savings
$1,305
Net Monthly Cash
$437
Cash Savings Rate (%) Post Fixed Savings
6

Well, due to Covid we are spending a fair bit less. In fact this month we had the lowest 'variable' spend since I began tracking in that format over 2 years ago.



Wealth Building

Equities + Cash, excludes money we put aside for holidays (once the world returns to normal)  and so is my best indication of money we expect to have for some time. We're up to £15.3k which is £400 off of our best ever.. expecting to keep ploughing money into this to grow our wealth.

Equities - which is a split between Global Index tracker and my dividend based portfolio - increased to £5.8k. This is the most I have ever held in equities.
 


When including the holiday savings (£10.1k) and pension (£50.9k) we currently have wealth of £76.3k which is a) £5.9k higher than last month and b) the most we've ever had.
















Wednesday, 29 April 2020

#113 Portfolio Addition

With the addition of NXT last time round my portfolio has increased to 12 companies.

ABF - BATS - BNZL - BWY - CCH - DGE - JMAT - LGEN - MNDI - NXT - SSE - ULVR

After some shortlist reviewing today I am looking at Moneysupermarket.com (MONY).




Well known comparison and insurance site. Within a sector (Media) that I currently do not have exposure too.

With a current share price of 315p, currently sitting squarely in the middle of the 52 week high (419) and the 52 week low (210).

Market Cap of £1.7bn puts it in the top quarter of the FTSE250.






Dividends

Current potential yield is 3.72%
Continuous dividend increases for the last 10 years. Averaging 8% yoy growth over the last five years.
Div cover of 1.55 currently.

Financials
  1. Are Earnings Per Share (EPS) consistently growing? YOY EPS growth 5+ year
    1. Yes they've grown YOY for the last ten years. πŸ‘
  2. Are they paying out too much on dividends? Payout Ratio <60%
    1. The average payout ratio for the last 5 years is 69%. This is trending down though.
  3. Is the ratio of share price to earnings sufficiently low enough? PE ratio <18
    1. 16.81 πŸ‘
  4. Is the Gross and Net Operating profit high enough? Gross 20%> Net 5%>
    1. πŸ‘Gross average is above 70%, Net above 30%
  5. Debt levels? Current Ratio >1 & Debt:Equity <1
    1. 1.32 and 0.15 respectively πŸ‘
My only concern here is the payout ratio is above 60%, but it is trending down quite consistently and in 2019 was only 63%

What I've been looking for is a company that is consistently growing YOY and providing a good return via dividends. MONY tick all of those boxes.
MONY EPS over the last 10 years vs the average of my portfolio...

So far I am convinced. The obvious concern is has the growth already happened.

The last check is vs the sector because 'Media' encompasses quite a few other candidates. From the FTSE100 we have

AUTO - too low yield for further analysis
INF - earnings performance isn't as strong
ITV - earnings performance isn't as strong
PSON - earnings performance isn't as strong
REL - too low yield for further analysis
RMV - I would really like to be invested in but the current yield is too low for my strategy ~1.3%
WPP - potentially but 10% yield raises flag

On that basis I am going to go with my instinct and add £200~ of MONY to my dividend portfolio, to take me up to 13 companies....

70 MONY shares purchased for £228.61 an average of £3.27 per share.
This equates to an expected yield per share of 3.59%
This increases the total forecast annual dividend of my portfolio to £90.17
MONY now makes up 9% of my portfolio weighted by holding value