This is my November 2019 FFJ Portfolio update. The portfolio was created in January 2017 for the purpose of demonstrating how investing in high quality companies with competitive advantages and with a record of consistently increasing dividends can assist investors in reaching their long-term financial goals without the need to speculate or to chase dividend yield.
I am concerned with the valuation of many high quality companies in which I wish to initiate / increase exposure. Purchases, therefore, have been somewhat sporadic. I have, however, been able to acquire additional shares in existing holdings (Church & Dwight, Becton Dickinson, Broadridge, and Chevron) and I also initiated a position in Stryker.
Access to the articles I have written in November can be accessed here.
In my October 2019 FJJ Portfolio Report I indicated that I only had one outstanding covered call contract and that was on Automatic Data Processing, Inc. (ADP). I had written 5 November 2019 $180 covered call contracts on shares held in an account for which I do not disclose details which generated $2.30/share or ~$1,134 in option premium income. ADP's share price at expiry closed below the $180 strike price so those option contracts expired worthless meaning I have retained 100% of the option premium and I have also retained the underlying shares.
The holdings within the Core Accounts and Side Accounts within the FFJ Portfolio can be accessed here.
The monthly dividend income generated can be viewed here.
In my December 2018 monthly report I disclosed the following dividend income targets for 2019.
- Core Accounts - CDN $15,000 (~$14,000 in 2018) and USD $18,000 (~$17,000 in 2018)
- Side Accounts - CDN $19,000 (~$7,400 in 2018) and USD $12,000 (~$3,400 in 2018)
With the subsequent rapid rise in the valuation of many companies I curtailed my purchases over the course of most of 2019. As a result I may, therefore, miss some of the targets I set. This does not bother me. I certainly was not prepared to overpay to acquire shares just so I could reach dividend income targets. In addition, I have generated option income which more than covers the gap between actual and target levels.
That’s it for my brief update.
I wish you much success on your journey to financial freedom!
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Disclaimer: I have no knowledge of your individual circumstances and am not providing individualized advice or recommendations. I encourage you not to make any investment decision without conducting your own research and due diligence. You should also consult your financial advisor about your specific situation.
I wrote this article myself and it expresses my own opinions. I am not receiving compensation for it and have no business relationship with any company whose stock is mentioned in this article.