I can’t believe it is December already. Where have the last 11 month gone. Time seems to have flown by. It is amazing how the concept of time works. At times it felt like the days were mundane and never ending. Yet looking back it seems to have gone by in a flash. It is true what they say, the days are long and the years short.
The month has so far been a positive month for the UK stock market, as has 2019 as a whole.
But that doesn’t tell the full story. Just because markets are gong up doesn’t mean it’s all sunshine and roses.
Looking at the macroeconomic data has showed that the global economy has slowed down, with particular weakness in industrial and manufacturing sectors. There is also the small matter of the US / China Trade war as well as economic and social unrest in geographies around the world, with Hong Kong being the most notable example. There is also the small matter of the UK general election coming up.
It will be interesting to see how all the above factors play out. This is why you haven’t seen me making large stock purchases over the past few month.
By investing regularly every month, I stand to benefit if the stock market moves higher as my stocks will be worth more. Even if the markets had to move sideways I stand to benefit as dividend yields are currently higher than interest rates on savings accounts. And if the stock market were to drop, I have kept enough cash on the sidelines to make large purchases in high quality companies. Investing on a regular basis seems like a win win.
Below are the stocks I bought in November:
- AG Barr – Bought 30 shares of BAG at £5.40 each
- Imperial Brands – Bought 11 shares of IMB at £18 each
- Reckit Benckiser – Bought 3 shares of RB at £5.7 each
- PZ Cussons – Bought 79 shares of PZC at £1.99 each
The above stocks are all from the consumer staples sector which has historically been one of the best performing sectors of the stock market. Consumer staples are less dependent on the economic climate as companies within this segment sell essential goods that people need regardless of the economic environment. The products are resilient and the earnings streams are predictable. Think toothpaste, deodorants, body wash and cleaning products. It is easy to see why I am particularly paying attention to this sector in the current environment.
As a result of the above purchases, my annual dividend income has increased by £36.
I can now expect to receive £3,714 in pure passive dividend income on an annual basis. This is amazing. I make £10 just for waking up every morning. Owning shares in great companies is certainly a wonderful feeling.