MONTHLY JOURNEY TO FINANCIAL FREEDOM: 49th

As if the humanitarian tragedy caused by the invasion of Ukraine by Russia was not enough, the world stock markets also felt the reflexes of the conflict in February/2022, mainly due to the harsh economic sanctions applied by several countries against Russia, which consequently raised the price oil and other commodities.

Despite the unfavorable external scenario, Brazil benefits, as it is a major commodity exporter. As a result, the Brazilian index rose 0.89%, surpassing the American stock market by more than 15% in the year.

On the other hand, my portfolio does not benefit from the external scenario, since most of my companies are commodity buyers. As a result, I had a negative performance of 1.78%, higher, however, than the Brazilian index of negative-paying stocks (IDIV fell by 2.32% in February).

For the year, my portfolio returns only 0.95%. But that's just out of curiosity, as I don't care much about profitability, because what interests me is passive income.

POSITIVE AND NEGATIVE HIGHLIGHTS OF THE PORTFOLIO

FRAS3 was the positive highlight in my portfolio. While on the negative side, the highlight was TUPY3

BUY SELL

Despite the conflict between Russia and Ukraine having impacted several assets in my portfolio, there were no big drops in prices so I could take advantage and buy a greater amount of good companies paying dividends.

In February/2022, I continued to buy the electricity generator, AES Tietê. I purchased 500 units at R$ 11.19 each, thus totaling a contribution of R$ 5,595.00. Based on the average of the last five years of dividends, the company pays BRL 0.777880 per share, which represents a yield of 6.95% of the price of BRL 11.19. With this acquisition of 500 units, I now hold 9,762.00 shares of the company at an average price of R$ 11.26.

I also bought R$2,074.00 in ENBR3 shares corresponding to 100 shares. Although the company is paying an annual average of BRL 0.698489 per share, which represents a yield of 3.37% at the acquisition price of BRL 20.74, the company announced that it will still pay BRL 1.39 per share as dividends, which represents a yield of 6.70%. However, the payment of these dividends will still be resolved at the Annual General Meeting to be held on 04/05/2022. With this acquisition of 100 shares, I now have 2,000 shares at an average price of R$13.74 per share.

These were the two companies that bought in the month, thus totaling a total investment of R$ 7,669.00.

NEXT ACQUISITIONS

If in the next month, the stock prices are below or remain the same as the closing of February/2022, I will possibly buy with the following companies:

However, despite ENBR3 not appearing on the list of companies paying more than 6% in yield at current prices, I will possibly continue to buy shares in the company, since I expect to pay a dividend of R$ 1.39 per share, but, of course , as long as there is a drop in its price from the highest point reached in 52 weeks.

Most likely, the most recent stocks I will buy will likely be those that pay dividends greater than 6% and that current prices are far from the highest prices of the last 52 weeks.

PASSIVE INCOME

Despite the negative performance of my portfolio, this month was excellent for me in terms of dividends. February 2022 was the second month I received the most dividends since I started adopting the strategy.

This month, BBSE3 paid R$4,635.73 in dividends corresponding to a return on cost of 4.28%, after taxes.

Another company that paid me dividends was MDIA3. I received R$ 1,930.02 in dividends, which represents a yield on cost of 4.55%, which, by the way, surprised me, as I did not expect a yield at this level in the short term. Since in this case, I invest in her as a potential dividend payer.

And, the last company that paid me dividends in February/2022 was KLBN11. After tax deduction, the company paid the amount of R$ 480.50, which is almost the same amount it paid me last whole year (R$ 492.86). In this amount paid, the yield on cost is 2.35%.

Thus, at the end of February/2022, I received a net total of R$7,046.25, losing only to the month of May/2021, when I received R$11,527.23.

NEXT DIVIDENDS

With the end of February, I already received the amount of R$ 8,715.26 of passive income in the year 2022. However, three companies in my portfolio have already confirmed that they will pay me dividends this year, they are: ENBR3, ITSA4 and MDIA3 , which adds up to R$ 4,454.01 in dividends still to be received.

EQUITY

I ended the month with an equity invested in shares of R$911,676.84, slightly higher than the previous month (R$903,844.84). In fixed income, I ended the month with a balance of R$ 115,196.88. Note: I had to make a partial redemption to cover expenses.

So, at the end of the month, I ended up with an equity of R$ 1,026,873.72.

ALLOCATIONS

My portfolio continues with 14 companies. I still don't think about getting rid of any company in the next few months. After the acquisitions this month, my portfolio looked like this:

MY GOALS

My goal for this year is: i) to reach R$ 1,000,000.00 invested in shares; and, ii) receive R$ 45,000.00 in passive income.

Well then! At the end of the month, I ended up with a capital invested in shares of R$ 775,959.96.

And I also ended up with a passive income accumulated in the year of R$ 13,169.28 (graph below), including dividends that I will still receive, thus representing a return on cost of 1.70% (graph above).

I believe I will be able to achieve my goals this year. For that, I need to earn more money from my work (active income).