#105 2 Additions to the Portfolio

Following my recent review and recommended BUY for BWY, BNZL and DGE and my subsequent purchase of BWY. I decided to put more money into my portfolio.

I have convinced myself that this is because the sooner I get my portfolio up to 10+ companies I'll have lowered the risk because it will reduce the weighting of any one company to circa ~10%~

In reality this is probably because a) I'm excited by increasing the size of my portfolio and b) because I had an extra £1k come to me from old work expenses which I had completely forgotten about :)

So I invested in the remaining two companies that I had decided I would BUY; BNZL and DGE.

Currently, based on the amount of available cash I have and expect to have going forward I'm starting with intitial purchases of £200~ per company.

Here's the data behind the deals and update to my portfolio.

I completed these two purchases on Monday 9th March - ie the day that the markets crashed due to the oil price and continued coronovirus.

BNZL 

Purchased 12 shares for £218.15 including fees. This averages out at a cost of £18.18 per share.

Pretty happy with this price. Their 52-week high is £25 and 52-week low is £17.48.

This adds £6.16 expected annual dividend to my portfolio. It'll be nice when these numbers are more significant. I have to accept I am at the very beginning of a long journey.

That expected £6.16 annual dividend equates to 18% of my expected portfolio annual income.

At the cost price and expected annual dividend this purchase provides a yield of 2.82%

I will first benefit from a dividend in July this year.

DGE

Purchased 7 shares for £189.18 including fees. This is an average cost of £27.03 per share.

Again this is far closer to the 52-week low (£25.69) than it is the 52-week high (£36.33) so happy with price.

 This adds £4.80 to my expected annual returns. Which equates to a 14% weighting within my portfolio expected annual returns.

At the cost price and expected annual dividend this purchase was at a yield of 2.54%

The first dividend I'll receive will be in October this year. Sadly I missed the ex-div for their April payment by a matter of weeks.


Overall Portfolio

I have now invested £1,035 in purchasing shares.

My RPC shares were sold for £190.32, crystallizing an £8.75 loss exc received dividends. This was because the company was taken over, disappointing but I'm sure I'll have bigger lows to come on this journey.

The remaining 41 shares I own are currently valued at £842.50. This is -£2.18 than I purchased them for.

My total expected annual dividend is £34.29. This equates to a yield on the portfolio purchase price of 3.31%