$TDIV (-0,35 %)

I've never posted this here before, because my portfolio is actually always publicly viewable on my profile—but now I'd just like to introduce my portfolio.

Please note: This is a dividend-paying portfolio! The goal is to receive monthly dividends to supplement my income. A secondary goal is medium- and long-term capital appreciation, but at a minimum, to offset inflation (though, of course, I’d be happy with significantly more). The portfolio aims to avoid excessive volatility so that, in the event of a liquidity crunch (if necessary!), I can liquidate positions without taking too much of a hit during market downturns.

Background: I’m 51 years old, married, and have two children aged 7 and 9 (their investment accounts aren’t shown here). I haven’t been actively working for about two years—I only take on occasional real estate projects that interest me. I’ve sold my small business, and I don’t receive a statutory pension. Our primary family income consists of rental income and my wife’s modest salary.

The portfolio (as I see it): I have a “core” consisting of an actively managed fund from Fürstlich Castell’sche Bank (which is essentially their asset management service for “less affluent clients”) combined with the $TDIV (-0,35 %) (dividends and conservative growth) and $WINC (-0,37 %) (boosted dividends via CC). Below that are individual stocks that either pay high current dividends or offer reasonable dividend growth. With $WAWI (+0 %) and $MPCC (+0,1 %) I have a few riskier shipping companies in my portfolio (you’ve got to have a little fun, after all) and, as small-cap picks, a few exotic stocks—also with a focus on dividends (I’m still working on expanding the position sizes here to at least 5,000 each).

Why a fund and not an ETF as the largest position? Well, that’s a separate issue. This is my primary bank, which I use mainly for my real estate financing. I’ve had the same account manager there for 25 years, who can make decisions with virtually no consultation. That’s worth its weight in gold, which is why I can’t evaluate this holding based solely on the TER.

Important note: I invest primarily in real estate; this portfolio accounts for only about 14% of my total investments. The rest consists of rental properties. So I have an extremely high weighting in real estate; the overall allocation could probably be described as ultra-conservative. Here are the key figures for this asset class: total market value of approximately 6.5 million euros, outstanding loans of approximately 1.4 million euros, annual net rental income of about 275,000 euros, 56 residential units (mainly in Leipzig)—and a few more are being added right now.

I look forward to your feedback—perhaps you have suggestions on how you would further develop this portfolio given my situation.

$TDIV (-0,35 %)

Hi everyone,

I'm currently thinking about streamlining my portfolio a bit and focusing more on cash flow .

The following positions are currently on my sell list:

➡️ Uber

➡️ Netflix

➡️ BYD

➡️ Aberdeen India Fund

Selling these would free up about €13,000 would be freed up.

My plan: To use the money for a lump-sum purchase of the iShares World Equity High Income Active UCITS ETF (WINC / IE000KJPDY61) $WINC (-0,37 %) and then continue contributing to the ETF on a monthly basis.

The ETF currently has a trailing dividend yield of about 9.6%

The idea behind this:

💰 Significantly increase cash flow in the portfolio

📊 Diversify more broadly with an ETF

🧹 Reduce the portfolio from 20 to 16 positions

🔄 Build another long-term monthly cash flow component

As a foundation, I already have the VanEck Dividend Leaders $TDIV (-0,35 %) in my portfolio.

I’m aware that the high dividend yield doesn’t come “for free”: WINC is actively managed and generates part of its additional returns through the sale of call options on stock indices. However, this can also affect capital growth and long-term returns.

What do you think?

Would you invest the approximately €13,000 all at once in $WINC (-0,37 %) or would you prefer to invest it in stages?

And most importantly: Do you see any catch with WINC that I’m currently overlooking? 👀

I’m looking forward to hearing your opinions and experiences! 🚀

I invest with a focus on dividend growth, quality, and attractive valuations. That’s why I set a maximum purchase price for each position based on dividend yield, growth expectations, and my own Margin of Safety (MOS).

I use this overview as a guide to keep emotions out of my buying decisions and to wait patiently for opportunities.

$LMT (+0,22 %)
$UNH (-0,76 %)
$MCD (-0,84 %)
$JNJ (-0,47 %)
$PEP (-0,66 %)
$PG (-0,55 %)
$QCOM (-0,58 %)
$UPS (-0,18 %)
$NN (-0,31 %)
$ASRNL (-0,31 %)
$KO (-0,68 %)
$WKL (+0,19 %)
$MO (-0,02 %)
$ADC (+0,64 %)
$MAIN (-0,01 %)
$O (-0,8 %)
$TDIV (-0,35 %)
$VPK (-0,21 %)
$SHEL (+0,1 %)
$AD (-0,26 %)
$DTE (+0,02 %)
$WHA (-0,22 %)
$EOAN (-0,01 %)

$TDIV (-0,35 %)

I have $BATS (-0,03 %) and $PG (-0,55 %) sold them. I’d had both in my portfolio for several years. Bat doubled in value during that time, but I don’t see it continuing that way, and they’ve also dropped quite a bit since I sold at 55 euros. Procter & Gamble has more or less been treading water, and I got out at 126 with a small loss. I just can’t see them acquiring, say, something like $LDGL (-0,51 %) or $TDIV (-0,35 %) .

The proceeds went into that as well.

The aerospace and defense sector now accounts for about 8% of my investment capital. Although some companies in the industry are already in the $HMWO (-0,15 %) , $TDIV (-0,35 %) or the $VHYL (-0,33 %) portfolio, they were nevertheless added as individual stocks due to their long-term trends and future prospects.

These are $LMT (+0,22 %) , $NOC (+0,07 %) , $AVEX and $AVAV (-0,42 %)

The defense sector is booming for the first time since 1990 due to global conflicts and looming crises—order books are full, jobs are being created, and new plants are being built. Countries are arming themselves with drones, among other things, as well as other equipment and systems, ever since they’ve seen what these are now capable of. Defense capabilities against drones, cyberattacks, and hybrid warfare also play a massive role and require nations to arm themselves against these threats.

In addition to the current boom, however, this industry is also interesting for another reason: it is quite recession-proof due to its customer base. Furthermore, there are high barriers to market entry, few competitors, and the customers are almost exclusively governments—which also have maintenance and upgrade contracts in place for decades to come—and, last but not least, a certain level of trust among users in the systems’ performance.

Even though one might sometimes get the impression that NATO is falling apart, many systems and pieces of equipment are still compatible with one another—or are intended to become so in the future—which greatly expands the list of potential customers.

Disadvantages of the industry? A high concentration of customers, development risks, export restrictions, political interference—sometimes sensible, sometimes less so—and if a company falls behind technologically, it could very quickly lose ground.

While $LMT (+0,22 %) and $NOC (+0,07 %) have been established in the industry for years and are growing through scaling, diversification, and expertise, $AVEX and $AVAV (-0,42 %) represent, in my view, the future of military development and thus represent a growth bet on nations’ drive to deploy autonomous systems in crisis zones.

My conclusion is this: Anyone who actively chooses to include defense industry stocks in their portfolio accepts an ethical dilemma, but benefits from tremendous predictability, structural tailwinds, as well as technological change and the associated government spending.

Final Thoughts:

If world peace were to break out tomorrow—then, by the way, I would be more than happy and more than willing to pay the price for it in the form of losses!

*contains AI-generated images*