Portfolio Update: March 2017

March came and went - and my portfolio value did not see much movement. Could the so called ‘Trump Rally’ be over?

Frankly I am not too concerned about the market value at any given day. I rather focus on buying high quality dividend growing companies that I can add to my portfolio. In this post I provide a short recap on the previous month.

I made just one purchase this month: on March 28 I bought 15 shares of Accenture plc. (ACN) for a total of $1814.76. With this purchase I added more Technology to my portfolio - traditionally not the sector where you find many dividend growth stalwarts.

Rumors about Oracle acquiring Accenture proved to be false and the stock has seen some more decline after my purchase. I might add more later on but for now I am content with this position.

At the end of March 2016 my portfolio consisted of 26 positions with a total value of $29,973.  At the end of March 2017 my portfolio consisted of 39 positions with a total market value of $72,713 - a Year-on-Year (YoY) increase of 142%.

This YoY increase is shown in the graph below.

How was your March? Leave a comment/reply to share your thoughts!

New Buy: Accenture plc (ACN)

Right after I put Accenture on my watchlist for April the price dropped by about 4%… ah, the power! I made good use of this drop by buying 15 shares of Accenture plc. (ACN) for a total of $1814.76. In this post I break down my reasons for adding ACN to my portfolio and what this means for my forward dividend income. 

Accenture is a professional services company serving clients in various industries and in geographic regions, including North America, Europe and Growth Markets. The Company provides management and technology consulting services. Its segments include Communications, Media and Technology; Financial Services; Health and Public Service; Products, and Resources.

One of the reasons I put ACN on my watchlist is that the company is a dividend contender, with 12 straight years of dividend increases. The current yield is  2.03% - lower than the average 3.5% yield I strive for in building my portfolio. However, the payout ratio is at 40%, leaving significant room for growth. The 5 year dividend growth is an impressive 12.38%.

Accenture’s Earnings per Share (EPS) show a solid 5 year annualized growth of +13.66%. The Price/Earnings (P/E) ratio is 19.9, a little above the 5 year average of 18.02 but well below the IT industry’s 5 year average of 24.31.  

In their March 25 report S&P Capital IQ marks Accenture as a 3 star hold with a 12 month target price of $129. 

Given Accenture’s dividend of $1.21  per share and it’s biannual payout this recent buy means an addition of $36.30 to my forward dividend income.

What do you think about Accenture? Leave a comment/reply to share your thoughts!