Weekly Investment Review Series
Welcome to the launch of my new series, "Weekly Investment Review," where I’ll be sharing the progress of my portfolio, insights into stock selections, the practical uses of dividend income, and strategies for long-term investing. Since embarking on this investment journey, I’ve faced ongoing challenges like how best to allocate assets and make the most of dividends. This week, I’ll reflect on these daily efforts and present the following topics:
Highlights of This Week’s Update
- Portfolio Allocation: An analysis of my risk-aware strategy with detailed charts.
- Stock Picks of the Week: A quiz-style hint about the latest additions to my portfolio.
- Using Dividend Income: Practical examples, including plans to upgrade our washing machine.
- Resuming NISA Investments: Why I restarted investing in S&P500 for long-term growth.
- Investment Summary: Balancing risk and reward in my strategy.
This week’s update offers a glimpse into not only my bold investment approach but also how the returns are improving everyday life. Let’s dive in!
1. Portfolio Allocation
Here is the current state of my portfolio. It reflects a mix of equities and mutual funds, while maintaining a reasonable cash reserve and pension balance:
| Asset Category | Allocation |
|---|---|
| Equities (Direct Holdings) | 57.7% |
| Mutual Funds | 31.4% |
| Cash/Deposits/Crypto | 6.3% |
| Pension | 4.4% |
| Points | 0.1% |
Key Observations:
- The cash allocation of 6.3% may seem low, but this reflects my style as an "aggressive investor." By minimizing idle cash and taking calculated risks, I aim to accelerate wealth accumulation. This philosophy underpins my investment strategy.
2. Stock Picks of the Week
This week, I added two stocks to my portfolio, investing approximately ¥7,000 in each for a total of ¥14,000. Can you guess the picks from the hints below?
Stock #1: Resource Sector
- Hint: This is a leading producer of iron ore and nickel, based in an emerging market. The company’s earnings closely track commodity prices, making it a cyclical investment. Its high dividend yield makes it particularly attractive.
- Dividend Yield: 8%
- Investment Amount: ¥7,000
- Expected Annual Dividend: ¥5,600
Stock #2: Shipping Sector
- Hint: This company specializes in bulk cargo shipping. It offers high dividend yields and has a performance tightly linked to freight rates. Despite volatility, the current dividend levels are compelling.
- Dividend Yield: 12%
- Investment Amount: ¥7,000
- Expected Annual Dividend: ¥8,400
Total Expected Annual Dividend: ¥14,000
These investments already cover last month’s electricity bill, showcasing how dividends directly impact my day-to-day finances.
3. Dividend Income and Its Use
This week, I received a total of ¥68,581 in dividend income from one of South America’s largest oil companies.
Dividend Income Details
- Hint: The company is an energy giant specializing in oil and natural gas production and export. Its earnings are influenced by crude oil prices and exchange rates, but its robust dividend yield offsets these risks.
Planned Use of Dividends
I’m planning to use this dividend income to upgrade our household washing machine. Here’s the model I’m eyeing:
Model: Haier 10.0kg Fully Automatic Washing Machine (JW-XD100A)
- Features: High-capacity drum (10kg), automatic detergent dispenser, and powerful spiral cleaning for stubborn stains.
- Price Range: ¥65,000–¥70,000
Why Upgrade?
- Usage: Our current washing machine is over 8 years old, with declining performance.
- Family Needs: With a child in the household, a larger capacity is essential.
- Space Constraints: Given our rental space, a top-loading machine is the most practical choice.
- Efficiency: Separating washing and drying reduces overall time.
4. Resuming NISA Investments
I’ve restarted my NISA investments through Rakuten Securities, focusing on eMAXIS Slim U.S. Equity (S&P500). I’m contributing ¥3,000 monthly with reinvestment.
Why S&P500?
- It offers broad exposure to 500 leading U.S. companies, ensuring diversification and long-term growth potential. This aligns with my strategy of balancing income-oriented investments with growth assets.
5. Balancing Risk and Reward: A Weekly Summary
This week, I took significant steps in maintaining a balanced yet aggressive investment strategy:
- Portfolio Building: Strengthened growth-oriented holdings in equities and mutual funds.
- Dividend Utilization: Demonstrated how investment income improves quality of life.
- Educational Content: Shared decision-making processes with readers.
Investing isn’t just about numbers—it’s about enhancing life. By connecting investment returns to tangible improvements, I aim to inspire others to approach finance with both pragmatism and ambition.
Final Thoughts
At the start, dividends often seem insignificant. I’ve felt this way too, but persistence has transformed these small payouts into a meaningful income stream. Last year, I earned ¥1.9 million in dividends—about ¥158,000 per month, roughly equivalent to the cost of the latest iPhone 16 Pro (128GB model).
Converting financial results into relatable comparisons underscores their value. For me, dividend income remains central to my journey. I’ll continue building my portfolio, using dividends to enhance life while progressing toward financial independence.
Let’s keep moving forward, one step at a time!