June '25 dividend portfolio update: top-slicing my biggest winner + mixed results from these small caps
This month I top-slice a position (a FTSE 100 stock) for the first time since the portfolio's inception. I also review results from an AIM high yielders and three Main Market small caps.
I don't normally top slice successful positions unless I feel they're starting to fail the sleep at night test. That's true this month.
The model portfolio's largest position – a defensive FTSE 100 high yielder – has grown to account for more than 8% of the portfolio. I don't see this business as a quality compounder, so I've decided to take some profits and reduce it back down to its original size.
Doing this should reduce the impact of any future disappointment, while still providing me with a useful income stream and exposure to any further gains.
A partial sale will also free up some cash to top up some other promising positions over the coming quarter.
In addition to this trading decision, I've also reviewed results from four of the model portfolio's small caps over the last month.
These include an AIM stock yielding 14% that's in the early stages of a turnaround. I've been following this story for a while and am cautiously optimistic about changes being made by a new CEO.
The other three stocks covered are all Main Market-listed companies that operate in specific niches where they enjoy strong market share. Two of these businesses have unbroken dividend records stretching back more than 30 years – I think there's a good chance that at least one of these may be maintained for another 30 years.
Read on for full details of my thoughts on each of these companies.
As a quick reminder, my model dividend portfolio broadly mirrors the shares in my main personal portfolio, although position sizing and cost will 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
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