Apr '25 dividend portfolio update: patient quality + a double profit warning

Welcome to my review of April's results (and profit warnings!) from the companies in my quality dividend share portfolio.

Rather unusually, all four of the companies featured in this month's update are AIM-listed small-cap stocks. Unfortunately, two of them issued profit warnings last month.

Fortunately, three out of four benefit from strong net cash positions and generally strong quality metrics. The fourth is fast falling into special situation territory, but I remain stubbornly confident in the investment opportunity and – more tentatively – the turnaround potential for the shares.

This situation has given rise to a new problem I need to address – style drift. The model portfolio's original mandate was for quality income, but at least one stock covered this month has now slipped out of that category and become a value play or even a special situation.

Style drift is never a good thing, especially in a systematic portfolio. In the coming weeks, I will be giving some thought to how I should address this issue. This could include changes to my holdings or to my process. I hope to include an update on this in July's half-year review (free to read).

As a quick reminder, my model dividend portfolio broadly mirrors the shares in my main personal portfolio, although position pricing/sizes may vary for practical reasons.

Please note that my comments reflect my personal views and are not investment advice or recommendations. Please do your own research and seek professional advice if needed. Full disclaimer here.

In this month's report

Here is a list of topics covered in this month's report, together with a summary of each section.

Please scroll down for the full report, or click on the links to go directly to a specific section.