This portfolio, managed by Charles Rault, started on December 7, 2018 with a view to investing mostly in Dividend Growth Stocks especially “Dividend Aristocrats” for the U.S. compartment. The time horizon is long term as long as fundamentals remain valid and all dividends shall be reinvested in order to benefit from the full strength of the Dividend Growth Rate (DGR) and its subsequent snowball effect. As a result, the day-to-day volatility of global markets doesn’t matter much as it is quality investing, not trading.
This portfolio is provided as general market commentary and does not constitute investment advice, please see the disclaimer below.
As of May 31, 2019, the portfolio holds 21 stocks among 8 sectors across the USA and Europe with a current focus on Financials and Energy, expects a total annual yield-on-cost (YOC) at 5.87 percent before taxes.
20190531 – Financials and Energy are currently making a large portion of the portfolio because several prominent stocks like Exxon Mobil Corp. (XOM) and Total (FP) in the energy sector are considered “cheap” given their price compared with their quality, Free Cash Flow (FCF) and payout ratio. As for French Financials like Société Générale (GLE), Crédit Agricole (ACA) and BNP Paribas (BNP), these are longstanding banks whose earnings still suffer from the ECB’s low interest policies but manage to sustain an underestimated good pace of activities, in addition to be widely considered as “too big to fail” in case of a systemic crisis.
The portfolio’s strategy is Dividend Growth-based, meaning that is aims to benefit from both strong, durable dividends on the one hand, and from a robust dividend growth rate on the other hand, thereby generating a twofold compounding effect. Investing depends on a dual tactic too, first with a minimum dollar/euro cost averaging sum invested every month, second with a larger sum ready to be invested when deemed relevant, i.e. when stocks price provide with a significant margin of security (MOS). As a result, if the market were free-falling, the whole portfolio would likely jump in total value and deeply change its stocks list as opportunities would emerge in line with its Dividend-Growth predefined criteria.
This page is updated monthly.