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Thursday, May 8, 2014

May 2014 update ($296,600 +$2,600 or +0.9%)



 ↑Accumulated $4,000 as part of my annual saving goal
GBP went up towards USD for my holdings it is gain of US$ 650
Vanguard VDE is up by US$ 2,400
↑ Vanguard S&P500 is up by US$ 300
Company shares went up by US$ 750
Grand total additions: US$ 8,100

Gazprom shares are down US$ 5,000
Rosneft shares are down  US$ 550
 Grand total losses: US$ 5,500



Observations:
-         Vanguard SPX 500 ETF 0.78 USD, after 10% tax 0,72 per share or 72 USD (50 EUR).  Current cost of the ETF holdings is $17,200.  Annual dividend is 300 USD or 1.7%  Which below inflation level.
-         Proposed dividends by Gazprom is $0.39 per ADR, while share price is $7.3, this gives us healthy 5%. At the moment Gazprom pays 25% of the net income to Russian standards, however it is moving towards Western standards and by 2017 it is expected that dividends will jump to 7-8% .  This year, for me this would mean $,8970 before taxes in dividends and $8,000 after. This is forecast.
-         Rosneft is going to recommend $0.33 dividends, while current share price is $3.4, which will bring 9% on the shares. For me, this would be mean $660 before taxes in dividends, and $600 after. 
       Both Rosneft and Gazprom forecasts only as shareholders meetings in June.  Both of the companies are depressed due to the political row which makes them even more attractive as far as dividends go.


4 comments:

  1. Hi Niterainbow,

    Thank you for sharing this information. You are doing so great, almost 300k net worth. Keep it up.

    Best regards,

    ReplyDelete
    Replies
    1. Hi Financejourney,

      After doing some calculation I realised that my journey for financial independence will take another 25+ even at a favorable market returns. So I will focus on dividends return until they match my expense and some more to compensate for inflation. From this respect 300K net worth means about 10K in dividends combined. I need much more than that, so patience for the year time come is strongly advisable.

      Delete
  2. Hey Niterainbow,

    This is some cool information. Do you ever feel that you are too concentrated in your holdings?

    -Ravi

    ReplyDelete
    Replies
    1. Hi Ravi,

      Many thanks for stopping buy. I did feel that the holdings are somewhat concentrated and one of my financial independence goals for this year is to find an additional investment vehicle :
      http://www.niterainbow.com/search/label/Goals

      Admittedly with the current current investment rate I need to save for another 25+ years before becoming a financial independent. I just want to avoid rush an investment before have good understanding of it.

      Delete