Trading212 Challenge - 17/02/2020

With another Monday done and out the way I have invested another £5 into the challenge account.

I really struggled today in what stock to invest into. With Oil stocks performing so badly lately I could have averaged down in BP and RDS, but I decided not to as I want to spread the money out a bit.

Instead I decided to add a new stock to the portfolio, this stock being Barclay ticker BARC.L

The reason I chose this stock above everything else is because of its fundamentals. Looking at the 5 year chart on BARC it has been beaten down a fair amount, though over the 1 year chart the stock has made a gain. With it been beaten down so much it has meant that BARC now has a dividend yield of 5.1% at the time of purchase, this is a nice large yield. I am not one to chase dividends but looking at the payout ratio it surprised me, as it is only 37.38%. This means that the dividend is quite safe indeed!

The bank currently has a profit margin of 16.59% and operating margin of 31%. Another nice thing is that the bank has £620 billion cash compared to £517 billion debt, this means they have a nice amount of cash to cover their debt which puts me at ease a fair amount.

With this stock going Ex-dividend on the 27th of Feb, its a great addition to the portfolio. BARC is currently a Bi-annual paying stock so I shall receive two dividend payments every year.

In addition to the recent purchase I received a dividend today from Realty income ticker symbol O. The amount isn't large of only £0.02, this won't allow any compounding and drip back into the stock but it allowed me to have a extra 2p to invest into BARC.

The portfolio has finished today 0.22% up giving a return of £0.38. As this portfolio has only recently been started a return of that amount isn't to be sniffed at, especially considering that the portfolio value is £177.60. The portfolio now consists of 22 investments which give at least 7 dividend payments every month.

It is more of a phycological effect in receiving so many dividends from stocks. As of current the Challenge account has brought in a total of £0.22 in passive income, this is a great start and it will be exciting to watch this portfolio compound and grow.

Happy investing to all.


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