This is the editorial of our monthly Shareholder Yield Letter published on 11.06.2024. Sign up here to get it in your inbox the second Tuesday of every month.
More information about the newsletter can be found here: The best large cap investment strategy ever
This month you can read about:
- A BIG investment mistake I know you are making (I still do)
- How to fix it – Easy with a bit of courage and small low risk steps
- Why this fix will give you higher, more consistent returns
But first the portfolio changes.
Portfolio Changes
Buy Four – Hold Two – Sell Four
Four new recommendations this month as the MSCI World index is above its 200-day simple moving average.
The first is a €46 billion Italian energy company with a shareholder yield of 11.6%. Over the past year, it has bought back 4.5% of its shares and paid a dividend of 7.1%.
The second is a $52 billion US car company with a shareholder yield of 18.3%. It made share buybacks of 17.2% and paid a dividend of 1.0%.
The third is a £35 billion UK-based bank with a shareholder yield of 7.9%. Over the past 12-months, it has bought back 3.3% of its shares and paid a dividend of 4.6%.
The fourth and last recommendation is a $143 billion US-based aerospace and defence company with a shareholder yield of 11.3%. It made share buybacks of 9.1% and paid a dividend of 2.2%.
Hold Two
Continue to hold Bayerische Motoren Werke Aktiengesellschaft (BMW) -10.1% (recommended June 2023) and British American Tobacco p.l.c. +3.0% (recommended June 2023) as they still meet the portfolio’s selection criteria.
Sell Four
Sell Diageo plc at a loss of -17.1% as it no longer meets the portfolio’s selection criteria.
Sell eBay Inc. at a profit of +18.1% as it no longer meets the portfolio’s selection criteria.
Sell Mitsui & Co., Ltd. at a profit of +56.1% as it no longer meets the portfolio’s selection criteria.
Stop Loss
Sell Bristol-Myers Squibb Company at a loss of -15.5%
You can read this month’s full editorial here: The Big Mistake You and Most Investors Make - Your Pond Is Too Small
