u/Ill_Bell6879

▲ 2 r/Dividendenstrategie+1 crossposts

The numbers (EUR):

┌──────────────────────────────────────────┬─────────────────┐
│ Metric │ Value │
├──────────────────────────────────────────┼─────────────────┤
│ Capital invested (since Mar 2022) │ €75,245 │
├──────────────────────────────────────────┼─────────────────┤
│ Current portfolio value │ €98,328 │
├──────────────────────────────────────────┼─────────────────┤
│ Capital gains │ +€21,240 (+30%) │
├──────────────────────────────────────────┼─────────────────┤
│ IRR │ 25.43% │ ├──────────────────────────────────────────┼─────────────────┤ │ Total dividends received │ €6,514 │ ├──────────────────────────────────────────┼─────────────────┤ │ 2025 dividends (actual) │ €4,136 │ ├──────────────────────────────────────────┼─────────────────┤ │ 2026 dividends (projected from calendar) │ €5,618 │ ├──────────────────────────────────────────┼─────────────────┤ │ Yield on cost (2026 projection) │ ~7.46% │ ├──────────────────────────────────────────┼─────────────────┤ │ Realized losses (cut quickly) │ −€359 │

Sector allocation: Shipping (tankers, containers) — cyclical, but extreme FCF distributions when the cycle runs

Energy (oil majors, midstream, gas) — high FCF yields, written off in 2020, now a core compounder

Dividend aristocrats — stability anchor, dampens portfolio volatility

Strategy in 3 principles:

  1. Buy contrarian. When a sector is abandoned, that's when I look hardest. Shipping in 2022, Energy on every oil dip.

  2. 100% reinvestment. No income withdrawal yet. Compounding does the heavy lifting.

  3. Valuation discipline. P/E, FCF yield, debt structure. High yield ≠ good investment — dividend traps are everywhere.

Lessons from 4 years: My best buys felt the worst at the moment of execution A 15% yield on deteriorating fundamentals is just slow capital destruction in disguise Sitting still during drawdowns was the single highest-ROI behavior — not adding alpha, just removing self-inflicted damage

Question for the community: Anyone else running a contrarian sector strategy? How do you balance high-yield cyclicals (shipping/energy) against traditional aristocrats — fixed allocation, or do you let winners run and rebalance only on extremes?

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u/Ill_Bell6879 — 11 days ago