Trading212 Portfolio- 08/06/20

Updated: Jun 14

Weeks summary


Stock picked: Reckitt Benckiser

Ticker: RB.L

Shares added: 0.07

Total shares owned: 0.17

Dividend yield: 2.89%

Payout ratio: 53.2%


Dividends received: £1.66


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This weeks stock

Concluding the poll of which stock should have our next £5 investment, the stock Reckitt Benckiser ticker RB. Won the vote thinly. Only beating the stocks Aviva by one vote. For the portfolio RB has performed nicely, which means we are averaging up with this stock.


What does Reckitt Benckiser do?

The company manufactures, markets and sells health, hygiene, and home products. Some of the products they manufacture and sell are: Nurofen, Dettol, Durex, Air wick, Cillit bang and many many more. They create products from home cleaning to analgesics. With so many recognisable you will quite easily find one of their products in almost every household. RB operates in the United States, Canada, Europe, Russia, Turkey, Israel, Australia, New Zealand and internationally. Reckitt Benckiser operates in the Consumer Defensive sector. They have 37,000 full time employees.


Fundimentals:

Dividend Yield: 2.89%

Payout ratio: 53.2%

Profit margin: -28.6%

Return on assets: 6%

Return on equity: -22.9%

P/E ratio (price to earnings): 20.17

Adjusted EPS: 349

EPS (Earning per share) Growth: 2%

BETA: 0.41

Cash: £1.55B

Debt: £12.3B

EBITDA: £5.25


Stock breakdown:

When looking into Reckitt Benckiser, we can see they manufacture some of the most recognisable bands of household products. With such a diverse range, covering so many sectors from personal hygiene to household cleaning you would think they have a lock in their sector. They have been hit hard lately as you can see from the profit margin being negative. This is worrying as an investor as you want to be investing into profitable companies. But I believe this to be a blip due to the economic situation. RB has had a lengthy and healthy dividend history, I believe, like all others have fallen on harder times. They offer a nice yield at 2.89% and a fair payout ratio. Looking into the payout ratio, of 20.17, we can see this is stock seems over valued at the current moment. This is backed up with the stock returning nearing its 52 week height. What is quite nice is the BETA number, with a 0.41 BETA means this stock isn’t as volatile as the overall market. Turning our heads to the cash to debt, we can see they hold a huge amount of debt compared to cash held. With this stock reaching at new heights I would again wait out and see where it moves. Though over the last 52weeks the stock has not dipped a huge amount.


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Dividends received

This week we managed to earned 6 dividends.

UKW @ £0.15

LTC @ £0.03

V @ £0.01

FSFL @ £0.15

LGEN @ £1.16

ULVR @ £0.16

Totalling £1.66 for this week alone! This converts into another £0.41 added to the charity donation.


Total dividend (Month): £1.66

Total dividend (6 month): £4.00


Amount for charity (6 month): £1.00


This has been the best month yet for dividend from this portfolio, not even that but the best week also. With receiving 6 dividends this week has been amazing and has really boosted the portfolios donation which is now £1.00.


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General account summary


We managed to reinvest UKW, FSFL and LGEN dividend back into the stock. This means we have officially started compounding. With LGEN we brought another 0.5 shares, FSFL we added another 0.1 and UKW another 0.1 shares. Now that we can reinvest the compounding effect can really start off. With each payout we will compound and grow this portfolio faster. Another amazing thing which happened this week was that for the first time in a long time, our portfolio went positive. The portfolio is now 1.16% positive with a gain of £3.91, it has been a mind blowing ride to this point. There is much speculation whether or not there will be another dip or a crash. The great thing about investing £5 a week means we can average down in the tough times and average up in the good. Averaging (down or up) is a great way and opportunity for any investor when thinking long term.


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What is:

P/E ratio EPS Payout ratio BETA Dividend


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