Portfolio Update #8 - Adding 2 UK Stocks

 



Hi Investors.

So it looks as though my "Super 8" portfolio has become the Super 10 portfolio. 

Today I added two UK stocks. The primary reason for this is because my previous 8 stocks were almost all US stocks, which meant every dividend I received was subject to a 15% withholding tax. A tax I can't escape. However, by buying UK stocks within my Stocks & Shares ISA account, I am able to avoid any taxes whatsoever, and instead, pay a small 0.5% stamp duty tax when purchasing shares.


1. Dividend Income Tracking Updates:

a) From now on, I'll be using USD to show my dividend income growth. Yes, it doesn't make much sense as a UK dividend investor, but my current dividend tracker doesn't show dividend income growth after a decimal point, for example, it may take a few weeks of investing to see a change from £210 to £211. Whereas in USD this change would come sooner due to the strength of the pound over the dollar. 


b) Additionally, you'll notice a new column in my dividend income tracking spreadsheet titled "Investment - Personal or Dividend". A personal investment simply means money I've invested that day from my own bank account, whereas a "dividend" investment is an investment made with dividend income paid to me by my stocks (DRIP). 


2. Dividend Income Tracker:

Can be found here: 


2. Today's Buys: 

Personal: £50 - Unilever ($ULVR) 

Personal: £50 - BP ($BP) 


3. Buy Commentary:

As mentioned above, it was important that I invest in more British companies to avoid the dreaded 15% withholding tax from US ones. After doing a little due diligence on UK stocks, I decided to put money into Unilever, a consumer defensive conglomerate, and BP, an oil and renewable energy company. Both are well established in their respected industries and have bright futures ahead (I believe). 

BP's strong recovery since the pandemic slammed their finances has been well received by investors and their management team alike. As for Unilever, they've come under criticism recently after a famous investor from the US advised that they focus less on the sustainability of their products and focus more so on profits. 

ULVR also plans to make job cuts where necessary and to work on their supply chain issues which I feel will hold great long-term shareholder value. I also picked ULVR due to their great free cash flows to sustain their dividends long term. 



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