Trading212 challenge - 02/03/2020

This week I decided to invest into two new stocks for the portfolio. These two new stocks are both house builders which are on the LSE.


The first stock is Taylor Wimpey ticker symbol TW.L. I added 1.2 shares of TW. Into the portfolio. TW. Is a great house building company which not only builds houses in the UK but also Spain. The current yield for this stock is 3.76% with a payout ratio of only 37%! This means that TW. Has lots of room to increase their dividend payout and sits comfortably under 50% payout ratio. As a house builder they have a profit margin of 15.52% which is very good. The company has a great cash to debt with 630 million cash and only 112.6 million debt, making the debt well covered. Taylor Wimpey is a bi-annual payer which pays out in the months of May and July.


The second stock added is house builder Persimmon ticker symbol PSN.L. I added 0.1 shares of PSN. Into the portfolio. Persimmon not only builds houses but also under the name of Westbury partnership created social housing. PSN. Currently has a dividend yield of 8.15% and a payout ratio of 84%, this means that this stock is more of a dividend income than growth. PSN has a slightly larger profit margin than TW, with a profit margin of 23.26%. One great thing about this company is the cash to debt ratio, it holds a staggering 843.9 million cash to 8.9 million debt. With this company holding so much cash it should have no trouble paying down debt.


The reason I added these two stocks instead of one was the fact that TW.L is a great stock for dividend growth where PSN.L is good for the dividend income. This allows me to explore both types of dividend investing in the portfolio.


CHALLENGE PORTFOLIO UPDATE


Sadly this last week I have not received a dividend finishing off February.

The total dividend income of the challenge portfolio in February has been £0.26, this is just the start of the portfolio and I’m hoping i'll bring in more dividends in March.


The portfolio has a current value of £177.33 and down 7.51%. This is a fair amount the portfolio is down, but this is due to a market correction. With the portfolio and the market as a whole down due to the correction this allows a great time to add more stocks to the portfolio and average down.


Currently in the portfolio there are 27 investments. With the top 10 being:

GSK.L 5.52%

AGNC 5.51%

KO 5.33%

DOM.L 5.13%

HRL 5.09%

LTC 5.05%

RDS 4.94%

ULVR.L 4.87%

T 4.84%

BLND 4.72%


I am hoping with these investments I will create a steady income from the portfolio.

Now March has arrived I have been giving more opportunities to increase the worth and income of the portfolio.



 

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