Trading212 portfolio - 19/05/20



Weeks summery:

Stock picked: Intel Ticker: INTC

Shares added: 0.11 Total shares owned: 0.11

Dividend yield: 2.23% Payout ratio: 24.76%

Amount of dividend:

£0.12

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This weeks stock

For this weeks pick we are adding a new share to the portfolio. This stock being Intel ticker INTC. As this is a new stock to the portfolio we're not averaging down on a stock but what we are doing is adding another 4 dividend payments each year to this portfolio. I noticed that the portfolio was getting renewable heavy and that we don’t have many tech stocks, so by doing this we are diversifying the portfolio over more sectors.

What does Intel do?

Intel designs and manufactures products and technologies such as cloud equipment. Intel is made up by many segments such as: Client computing group (CCG), Data center group (DCG), internet of things group (IOTF), Non-volatile memory solutions group (NSG), Intel security group (ISECG), Programmable solutions group (PSG) and New technology group (NTG).

The Intel group offered many products such as CPU and chipsets, system-on-chip, and multichip package products for cloud.

Fundimentals:

Dividend Yield: 2.23% Payout ratio: 24.76%

Profit margin: 30.02%

Return on assets: 11.48%

Return on equity: 30.31%

P/E ratio (price to earnings): 12.02

Adjusted EPS: 1.45

EPS (Earning per share) Growth: 16.42%

BETA: 0.83

Cash: $20.8B

Debt: $39.92B

EBITDA: 37.71B

Stock breakdown:

When first looking at the fundamentals for this company it is fairly interesting. We have a decent sized dividend yield of 2.23% but to me what’s best about it is the payout ratio. With INTC having such a low payout ratio (24.76%) this gives the company plenty of room to increase the dividend over time, but not only that but they are able to reinvest the majority of their profit back into the company. As the result of this they have the opportunity to increase the share price of this stock. Looking at the profit margins, the returns on equity and returns on assets we can see they are boosting good returns in their practices. Looking at the P/E ratio it is currently around 12 which to me looks like fair value. But digging deeper into it, in march 2020 the P/E ratio was 9.4 at its lowest and at its highest (26.5) was in march 2018, creating an average P/E of 15. Meaning this stock is more undervalued compared to the average of INTC but also the sectors average (30). INTC currently has a BETA of 0.83 which means it correlates quite closely to the market but with all the fundaments this doesn’t bother me as it looks like a healthy company.

With the cash to debt being $21B/$40B they have roughly half the debt as cash, to me this isn’t bad but prefer that the debt is fairly covered. Especially the way things are right now I like to see a company being able to cover most their debt incase. I would like to note that Intel is creating some rather exciting technologies in my opinion with focus on cloud tech and also autonomous driving. I believe that these things will come in the future and it's great to see a company looking to the future.

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Dividends received: £0.12

On Tuesday 12th of may we received a dividend for the week from AGNC of £0.12. This was a nice size dividend and a great addition to this months income.

Total dividend (Month): £0.32

Total dividend (6 month): £1.94

Amount for charity (6 month): £0.49

With the dividend from AGNC we managed to add another £0.03 to the charity pot bringing the total to £0.49. Having dividends this size is a great feeling as we are getting to the point where these dividends can compound but not only that, but it gives us more to donate. When calculating the amount to donate I am filling out a spreadsheet which rounds up, as some dividends you're not able to divide by 1/4. Next week I am expecting a dividend from Realty income ticker O as their pay date was the 15th, this is definitely one dividend I look forward to every month



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General account summery:

So far this has been a great month in terms of this portfolio. I taken a poll to decide which charity will get our first donation and we selected the Royal British Legion as our charity. They got the votes by a landslide compared to others and it's a great time to support the people who have protected us and our country. We have the opportunity to give back a little. The dividend income from the portfolio is really starting to kick off as we are almost getting a dividend every week.

With adding Intel (INTC) to the portfolio we now hold a total of 31 stocks, though some of these have suspended their dividend, this is a good reminder to always do your research on companies to see how strong their balance sheets are.

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What is:

P/E ratio EPS Payout ratio Dividend



 

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