MONTHLY JOURNEY TO FINANCIAL FREEDOM: 51th

Further price increases, whether with more expensive fuels resulting from the war in Ukraine or global logistical problems due to the lockdowns in China, continue to pressure world central banks to raise interest rates to contain inflation in their countries, which has shaken the economy.

Thus, in the month of April, the Brazilian index followed the negative sentiment coming from abroad and closed down by 10.10%, the highest since March 2020. My portfolio, in turn, had a smaller drop of 7.28% , lower, however, than the Brazilian dividend-paying stock index (IDIV fell -5.19% in April 2022).

In the year, my portfolio has a return of only 0.30%. But that's just out of curiosity, as I don't care much about profitability, because what interests me is passive income. I also emphasize that the profitability presented here is not incorporated with the dividends received, because, adding the dividends, I would have a historical profitability of 31.84%.

POSITIVE AND NEGATIVE HIGHLIGHTS OF THE PORTFOLIO

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

BUY SELL

As can be seen from the image above, FLRY3 this month had one of the worst performances in my portfolio, which led me to buy another 1,200 shares at an average price of BRL 15.17, thus totaling BRL 18,203 .00. As a result, I now have 4,000 shares of her at an average price of R$17.55.

AESB3 I haven't stopped buying since August/2021. This month, I bought another 200 at R$ 10.85, thus totaling a value of R$ 2,170.00. Now, I have 10,562 shares at an average price of R$11.23.

And going to the foreign market, I bought: i) 70 shares of ARVL at USD 2.84; 1 NFLX share at USD 220.22; 2 DIS shares at USD 116.45; 1 FB share at USD 189.00; and, 1 MMM share at USD 147.25. I will talk more about them later on.

After six months without selling any shares, I sold one share of VOO at USD 386.37 and 4 shares of HST at USD 20.60. I started to sell them, because, as I will address better on the topic of portfolio composition, I will remain faithful to the dividend strategy also regarding foreign assets. And another reason that made me sell them was the devaluation of the real against the dollar in the last month (almost 5%). It was much cheaper to sell the shares to have money for future purchases than to buy dollars and send them abroad.

So, in April/2022, I made BRL 25,567.48 in contributions and BRL 2,332.04 in sales.

NEXT ACQUISITIONS

If next month stock prices are below or stay the same as April 2022 close, I will possibly buy with the following companies:

I emphasize that foreign assets are included in my dividend strategy with a ceiling price of 6%, which I will talk more about in the composition of my portfolio.

In any case, I believe that, in the next month, I will possibly buy those companies that pay a dividend greater than 6% and that the current prices are far from the highest price of the last 52 weeks; or, even if the company is not within the 6% price ceiling, the stock is at the recent lows of the last 52 weeks and has the potential to generate dividends further down the road.

Possibly, I compared more shares of AESB3, in case the price goes down, since it normally publishes dividends in the months of May.

PASSIVE INCOME

This was the best month of April in terms of receiving dividends. I received BRL 3,815.38.

This month, ITSA4 paid R$ 200.00 in dividends corresponding to a return on cost of 0.20% after taxes. Another Brazilian company that paid me dividends was ABCB4. I received R$933.04 in dividends, which represents a return on cost of 1.84%. I also received R$392.41 from FRAS3, equivalent to 1.95% of the year. But the best company that paid me dividends was FLRY3, I received R$ 2,271.40 corresponding to a year of 3.24%. The remainder received in dividends came from assets abroad, whose assets I will talk more about the topic of portfolio composition.

NEXT DIVIDENDS

At the end of April, I already received the amount of BRL 15,304.18 in passive income in 2022, which generates an average monthly income of BRL 3,826.05 in these four months of the year.

However, I still have to receive BRL 14,565.76 in dividends from the following companies: TAEE11, ENBR3, GRND3, MDIA3 AND SAPR11.

EQUITY

I ended the month with a net worth of shares of R$ 991,367.53, lower than last month. In fixed income, I ended the month with a balance of R$ 133,907.51, an amount higher than last month as a result of a contribution made, which allowed me to increase my fixed income, thus representing 11.90% of my portfolio.

So, at the end of the month, I ended up with an equity of R$ 1,125,275.04

ALLOCATIONS

My portfolio no longer has 25 risky assets. My portfolio now has 29 assets, with the addition of DIS, NFLIX, MMM and FB. But, I'm already thinking about reducing the assets of my portfolio, especially with regard to foreigners. I'm thinking of keeping only those that generate passive income or have great passive income generating potential. So as far as foreign assets are concerned, I want to stay true to the dividend strategy.

That's why I started selling the assets in my portfolio that are more valued and that are further away from the 6% ceiling price, in order to buy other companies. However, I confess that I believe I made the wrong investments: NFLIX and FB, because at the moment I want to focus on consolidated companies and increase later on growing companies. But as there was a big drop in these companies, I decided to buy them.

So I think about buying more DIS and MMM as long as prices are closer to the lows or close to the 6% ceiling price.

The only risky asset I'm thinking of holding is the ARVL. In fact, this will be the only company with a lot of risk in my portfolio. I think about reaching 1% of my portfolio, which corresponds to R$ 10,000.00 or USD 2,000.00.

I'm just thinking about selling my uranium ETFs little by little, as I bought it only as a speculator. I also think about selling other ETFs: VOO, NOBL and VNQ. That's because my average prices are far from the 6% average prices: VOO (price: USD 275.45, ceiling price: USD 84.72), NOBL (price: USD 66.13, ceiling price: USD 25.16) and VNQ (average price: USD 101.93, ceiling price: USD 54.93).

I will also sell hotel companies, as long as they are not within the 6% ceiling price, which excludes the sale in PK (average price: USD 18.45, ceiling price USD 23.10) and BHR (average price USD 5.00 , ceiling price USD 6.80). Perhaps, I will still keep APLE, as the prices are very close (average price: USD 13.39, ceiling price USD 13.10). But, I will sell: XHR (average price: USD 17.37, ceiling price: USD 12.83) and HST (average price: USD 14.22, ceiling price: USD 9.83).

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$ 860,088.74

And I also ended up with a passive income accumulated in the year of R$ 29,869.94 (graph below), including dividends that I will still receive, thus representing a return on cost of 3.47% (graph above).

It can be seen, therefore, that I am getting close to my goal of one million reais invested in variable income, behold, considering the amount I have in fixed income (BRL 133,907.51), I would need more BRL 6,003.75 to reach the goal. But of course my goal is to have a million invested, so I need the stock market to help me, that is, for the stocks to fall in price so I can invest what I have in my passive income.

And as for passive income, despite still being far from my goal of R$ 45,000.00, I see that my strategy is already having an effect, because, with the amounts that I will still receive in 2022, I am already reaching the same value I received last year from passive income (R$ 31 thousand):

Keep going!!!!