Portfolio Introduction

Well, the time has come when I finally managed to do all the work to launch this website. As this is my first post, I am happy to share with you the idea behind Snugfortune before having a look on the portfolio itself. But first, a little background. I was born in 1985 and got serious about investing in mid 2015. It was when I discovered a fantastic blog where a guy was writing about saving and investing to achieve financial freedom. Jason Fieber (https://www.mrfreeat33.com) was dead serious about his plan. He utilized dividend growth investing and became financially independent at a young age of 33. I strongly believe that this goal is not out of reach for any other patient and focused individual. I don’t say it is going to be a walk in the park. But living below your means, investing large parts of your savings into high-quality dividend paying stocks is an efficient way to build wealth. No doubt about it!

Concept in a nutshell & birth of Snugfortune

Back in 2015, I’ve decided to focus on the DGI concept to reach out for my long-term goal: financial freedom. This implies to invest my excess funds into dividend growth stocks on a regular basis. But it’s not just picking these stocks randomly. Quality and valuation are two important factors that require further examination before buying a security. I get a first impression about the excellence of a business by checking the quality rating (read here). Valuation rating (read here) reveals whether a stock is overvalued, undervalued or fairly priced. You can read more about my investment approach here.

I’m really grateful having learned about DGI early in my life. Utilizing the basic idea, I’ve been able to build a good foundation already. The goal is that these holdings will cover all my living expenses in future. What a comfortable situation it will be! That is why I’ve decided to call my portfolio “Snugfortune”. According to thefreedictionary, the word snug relates to something comfortable, warm and cozy. Snug fortune is enabling people to live in comfort. Imagine, your investments provide you with the freedom to do whatever you like, without being dependent on conventional form of employment. In financial terms, I can’t think of anything else more comfortable than that!

Of course the definition of comfort might vary from individual to individual. My personal definition has nothing to do with luxury cars, expensive watches and big houses. I consider it comfortable to have the choice to do whatever triggers my passion. This is my ultimate understanding of comfort and freedom. I am very sure to arrive at that point in future by investing into the stock market today.

Stock portfolio snapshot

That being said, let’s have a look on the SF portfolio and its allocation.

Currently I’m invested into 25 individual stocks and 3 index funds with a total market value of € 44,425 ($ 50,645).
The three largest stock positions are:

  1. Johnson & Johnson (JNJ): 8.3%
  2. Altria Inc. (MO): 6.5%
  3. Starbucks (SBUX): 6.1%

JNJ was one of my first purchases. I consider this company as one of the best quality businesses in the world. JNJ is only one of the two stocks that holds a AAA credit rating by Standard & Poor’s (the other is MSFT). I am close to a full position in this stock.
MO is a well-run tobacco company. My quality rating indicates a great business. That is why I used recent dips to add to my position. MO has recently hiked its quarterly dividend by 14%! Impressive, especially when considering the high dividend yield.
SBUX is a relatively new position in my SF portfolio. I did the purchase in July. Since then the stock price went up pretty nicely. I like the long-term growth potential which should drive dividend growth as well. The shares are fairly priced at the moment.

The following chart shows the sector allocation across the SF portfolio.

Well, what should I say? I am heavily into consumer staples and I like it. Their business model is quite recession-proof. Even when the economy is going down, people still need something to eat and to drink. Companies like Coca-Cola (KO) and Unilever (UL) serve basic needs. That is the reason why we find many consumer staples among the so-called dividend aristocrats. But having 1/3 of the stock portfolio market value assigned to consumer staples, I have no intention to expand this share further. I would rather focus to find good investment opportunities in some underrepresented areas.

SF portfolio, X-Ray interpreter

The above chart shows the allocation of my portfolio compared to the S&P 500. The cyclical sector share is pretty much comparable to the S&P 500. I have recently acquired shares of the world largest asset manager BlackRock Inc (BLK). Besides Allianz SE (ALV) it is the only one position from the financial services. I definitely feel that there is room for at least a third one.

As already mentioned above, the defensive sector represents a major proportion in my portfolio. That results in a lower exposure to the sensitive stocks compared to the S&P 500. Especially the technology sector could use some invested capital. Having initiated a new position in Texas Instruments Inc (TXN) in October, I keep my eyes open for new attractive opportunities in this segment. Furthermore utilities and healthcare might be some potential candidates for next acquisitions. I am going to cover this topic in the upcoming December watchlist article.

Closing remark

Overall I am very satisfied with my portfolio today. It feels good to see the progress in value compared to the inception in mid 2015. But what matters to me the most is the dividend income it is producing. By the end of this year I expect to receive €1,100 ($1,249) in annual net dividends. That would equal an increase of 57% VS. the year 2017. I’m really looking forward to see the annual income crossing the €1,000 mark for the first time. The snowball is definitely rolling!

Disclosure: I am long JNJ, MO, SBUX, KO, UL, BLK, ALV, TXN


  1. divvydad November 29, 2018 at 8:25 pm

    Welcome to the DGI blogger community! It looks like you’ve been building a really nice portfolio, and I see we share a good handful of common holdings.

    I really like the information you’ve shared here and on the other pages of your site. Also, I love the projected vs. received dividend chart–I think I will have to look at adding something like that to my tracking. Keep up the great work and look forward to following along on your journey!

    1. Snugfortune November 29, 2018 at 9:31 pm

      Thanks for the welcome and the kind words, DivvyDad! Being a constant follower of your articles, I’m really glad that you found some value here.
      Regarding the chart: it is also my favourite one =). Simply because it’s visualizing the power of compounding – small stairs in the beginning, but large stairs at the end.
      Feel free to adapt/adjust it the way you like.
      Looking forward to future discussion.

  2. Engineering Dividends December 5, 2018 at 8:04 pm

    Yes, welcome to the DGI community, Alex. I agree you’ve got a good-looking portfolio. I perused your holdings and it appears we’ve got 9 stocks in common.
    You are off to a terrific start at an early age. The future is bright for you, especially if you keep your expenses growing at a smaller rate than your income.
    I, too, will be following along on your journey. I wish you plenty of investing success!

    1. Snugfortune December 5, 2018 at 10:43 pm

      Really appreciate your kind words, ED. Actually you the DGI people have been an inspriration to me to start this journey.
      And I learn more and more what a great and supportive community it is. Thanks for the visit and all the best for you, too.


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