My 2015/16 ISA Portfolio Returns – Beating The Market! 4


The tax year has come to an end today and with it ends my first year as an active dividend growth investor. Looking at the results over the past year, I am delighted to see that I have done really well and have outperformed the market – My portfolio returned 4.5% for the year whilst the FTSE 100 has returned -8% over this same period. I’m ecstatic that I have outperformed the maker by over 13%.

Whilst beating the market is a great feeling, I am more delighted to have began my investing journey this past year. I’ve gone from spending most of the money I earn to investing it in companies that pay me a dividend every few month. It is a great feeling when you open your email and find that you have been paid dividends as opposed to seeing a huge bill all the time. It is an eye opening experience when you realise that companies work for you and it need not be the other way round. As I have written before, money is a tool that should be used to make more money and this is exactly what I have been doing over the past year by investing.

For any non UK readers, the tax year here in the UK runs from 6 April to 5 April every year. In every tax year, individual resident in the UK get a tax shelter called an ISA and this shelters any gains and dividends from tax. The current amount an individual can invest in an ISA is £15,240 a year. Hence you see my investable amount is £15,240 and my portfolio year end dates are as such. There is a method too the madness.




CompanyCost (Amount Invested)Current market ValueDividends and Income ReceivedTotal Value (current market value + dividend)
Total£15,240£15,676£264.42£15,940.
Zambeef (ZAM)£2,699.95£2,720£0£2,720.00
Goldcorp (TSE: G)£1,396.32£1,526£15.77£1,541.77
BP (BP.l)£1,799.83£1,815£73.41£1,888.41
Shell (RDSB)£3,922.49£4,201£83.91£4284.99
BG£0£0£79.34£79.34
Tritax Big Box (BBOX)£484.84£528£11.99£539.99
Cash£4,936.57£4886 (inc dealing fees)£0£4,886

As seen above, I invested £15,240 during the year in 6 different stocks. I ended with 5 stocks as BG got taken over by Shell. That is why you see £0 invested in BG but cash received amount of £79.34. Apart from all my BG stock turning into Shell (RDSB), I received £79.34 as part of the deal. The rest of the amount I invested in BG has been lumped in with Shell.

The table above also shows that just over 30% of my portfolio is in cash. Due to the market being overvalued for the vast majority of the year, I had decided to stick to cash as opposed to buying companies at any valuation. I have been patient and have only bought into companies once there stock prices hit my intrinsic value. By being patient and sitting on cash, I was able to deploy the cash during the two market downturns in August 2015 and January 2016 and buy into excellent businesses at very attractive valuations. This is how i managed to bag myself a yield of over 8% on BP and Shell.

Taking the patient approach and only investing in companies that I have researched well and found value is the reason that all my positions are currently in positive territory. As a long term investor, I know that it is nonsensical to look at the performance of a portfolio for a period of less than 5 years. But it does give you an idea about where your portfolio is headed.




The projected dividend income I will expect to receive from this portfolio over the next year is £503. This is a yield of 3.3% across the portfolio. Considering that I have a large chunk of my portfolio in cash, I am delighted with my dividend income so far. I will be buying shares in more excellent companies with the cash I hold and this will increase my dividend income figure. One of my main focusses will be to diversify my portfolio as I have a heavy weighting on oil related stocks – but I am not too worried about this as Shell and BP are wonderful businesses.

As the new tax year starts, I will have to open a new ISA and the limit for this year is once again £15,240. I will look to invest at least that much as I know how important investing is when it comes to wanting achieve financial freedom. Hopefully, with the knowledge and experience I have now, my second year in the world of investing will be even better than my first!

(Note that  whilst other investments I made in Genie Energy, Woodford Patient Capital Trust, Woodford Equity Income, Fundsmith Equity Fund and Jupiter Japan Income Fund, have done will , I have not included them here as I bought them outside my ISA).

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