vrijdag 30 december 2016

December dividend income

The month and with that the year is drawing to an end so it is time to write down my dividend income for December 2016.

December was the best month yet, almost tripling November. Five companies paid me for just owning their shares:

  • December 7th Unilever (AMS:UNA) paid €4,13
  • December 9th Whitestone REIT (WSR) paid €3.83
  • December 10th Target (TGT) paid €1.92
  • December 15th Coca-Cola (KO) paid €7.90
  • December 16th Royal Dutch Shell (AMS:RDSA) paid €26.48
These sums combined gave me a dividend income of €44.26.

This brings this years total to €114.56 for 2016. Al these amounts are after taxes.

How was your last dividend month of 2016?

For everyone, enjoy New Year's eve!!!

dinsdag 27 december 2016

Relocated some stocks

Last two weeks I have been thinking about relocating my RDSA stock from my online brokerage account to the brokerage account I have at my home bank. This bank is where I have my mortgage, some of my saving accounts, my payment account and my credit card.

The reason why I wanted to move the stocks there was being eligible for the dividend reinvestment plan (DRIP) of Royal Duytch Shell. Owning 60 shares of RDSA I am receiving sufficient dividend each quarter to receive 1 extra share, even now that the stock price has risen significantly over the last few months.

However, while my online broker has very low transaction fees for regular buys of shares, I would have to pay €7,50 when I would want to DRIP. Buying 1 share in the regular way would only cost €2. So DRIPping at my online broker is no option and paying 2 euros to buy one share is no option form me as well, because this would mean a transaction fee of over 8%.

However, at my home bank, DRIP is free. It has much higher regular transaction fees but DRIP costs nothing.

So last week I sold my 60 shares of RDSA in my online brokerage account and bought those share back in my home bank brokerage account. I also bought an extra 10 shares in the process to make sure to be eligible for DRIP if the price goes up over €0 a share.
These transactions cost me €12,31 whereas if I would have just moved the shares from one account to the other it would've cost me €100.

So now I own 70 shares RDSA with which I can DRIP every quarter. This transaction will increase my forward dividend with almost 18 euros dividend income to €273.

dinsdag 20 december 2016

Strong dollars helps my dividend income

Since owning share of Whitestone Reit (WSR) I've been receiving their dividend every month. To date I have received four dividend payments. Since the beginning I own 50 shares of WSR. And, every month I have been receiving more dividend than the month before. This is not because of dividend reinvestment, but only because of the exchange rate between dollar and Euro.

When looking at the dividends received it increase from €3,59 to €3,83 after taxes. This is an increase of 6.7% without the company raising its dividend in dollars.

On the other hand my dividend income is vulnerable when the Euro gets stronger again. I don't think that will happen soon as the QE in Europe is still in full force while the Fed is raising interest rates again. Still I should think about that when I want to calculate how much dividend income I'll need to live off the dividends.

donderdag 15 december 2016

Recent buy: UNA

This moring I made another purchase of Unilever (AMS.UNA). After the rate hike by the Fed, US stocks were getting much more expensive due to the increasing dollar/euro exchange rate.

I didn't think I would be able to do another purchase this year, but paying off a debt on my previous home earlier this month (and saving up the dividends I received) made it possible to do this purchase.

That is why I decided to add to one of my Euro positions. Since RDSA is already the largest position I have and has increased in value a lot since the OPEC deal, I decided tot buy some more Unilever stock.

I bought 9 shares at a price of €37,75 per share. Including transaction fees this totalled €341.82 and a cost basis of €37.98. The puchase will add €11,52 before taxes or €9,80 after taxes to my annual dividend income.

The yield on this purchase is 3,37% and I am expecting a dividend increase announcement before the next dividend payout in march, so it might get a bit higher. However, this is a decent dividend yield nonetheless.

I now own 32 shares of Unilever at a cost basis of €38,84 per share.

This will be my last purchase of 2016. My goal in the coming year is to at least add 5 more (substantial) positions to my portfolio. I am constructing a watchlist for those positions at the moment.

For the rest of the year I will only be receiving some more dividends from Coca-Cola (today) and Royal Dutch Shell (tomorrow).

dinsdag 29 november 2016

November dividend income

December is almost upon us and all expected November dividends have been paid. In November 2016 I received the most dividend yet. Two companies and one mutual fund paid me for just owning their shares.

On November 11th Whitestone Reit (WSR) paid me €3,76 net for owning 50 shares. In dollars they paid me as much as last month, but in Euros I received 11 cents more because of a stronger dollar compared to the Euro..

On November 15th I received €9,69 net from Omega Healthcare Investors (OHI) for owning 20 of their shares. This was the first dividend payment I received from them.

On November 23rd I received €2,27 net dividend from Kempen Global High Dividend mutual fund for owning 8 parts of their fund. The dividend was reinvested automatically (DRIP).

In total the net dividend I received in November was €15,72 which is a whole 10 cents more that the previous top month (september).

December promises to be a new record month, but that's something for another post.

donderdag 17 november 2016

Added my KO position

After selling TGT yesterday I was looking to add to one of my existing positions. I decided to add 9 shares to my Coca-Cola holdings.

Why did I choose or KO and not one of my other holdings? Well the truth is it was my smallest holding and it is now at a much lower price than the other shares I bought. So yesterday I bought another 9 shares of KO for $41.20 each.

My total position is now 28 shares of KO.

This purchase will add $12.60.

So selling TGT and buying KO has increased my yearly dividend income by three dollars.

woensdag 16 november 2016

Already sold TGT again

As a dividend growth investor most of the time you buy shares and keep them for a very, very long time and collect those dividends. But sometimes you have to sell some of those shares.
Today I had to sell Target (TGT) after just owning them for 1 week.

Last week I bought TGT at $66.80 per share at the beginning of the markets after Donald Trump was elected president.
In one day the shares rose to about 71 dollars and stayed there until yesterday. And TGT went ex dividend last monday as well.

Today TGT presented it 3rd quarter figures pre market and those figures are quite good. Today the TGT shareprice rose again to 77 dollars plus. That's a 18% increase compared to my buying price. So today, after just owning the shares for a week, I sold my (4) TGT shares again for $77.25 per share. At the current quarterly dividend this profit equals more than 17-18 times dividend payment or 4.5 years of dividend payment.
This is a 15.6% profit. Adding the dividend into the equation of $0.60 per share increases profit to 16.5%.

But that's just the profit in dollars. As a European investor the Euro/Dollar rate is also important. And the dollars has risen quite a lot in the last week compared to the Euro. So taking that into account and taking off transaction fees, the total profit on my TGT shares has been 18.9%.

Of course I will reinvest the money that I now have in my brokerage account, probably I will add to one of my existing positions. And if TGT drops, it is back on the table as well..

This sell drops my 12 month forward dividend income with $9.60.

I have a question for the more experienced DGI's: Was this sell wise?

donderdag 10 november 2016

New position:Target Corporation

In the aftermath of the Trump election for president I already bought some shares of Unilever (AEX: UNA).

At the opening of the New York Stock Exchange I also made a purchase of shares of a company I already owned"Target Corporation. Stock prices were going up and down at the beginning of the market and I bought 4 shares at $66.80 per share. Including transaction fees the total costs ware €61.12 per share.

Target Corporation is a Dividend Aristocrat and has a record of 45 years of consecutive dividend growth.
Target pays $2.40 per share per year, which gives me a yield on cost of 3.57% and will increase my 12 month forward pretax dividend income with €8.73 to €270.06. My net annual dividend income is now €229.55.

Target will go ex dividend on November 14 th, so in 5 days I will earn the first dividends for this company

This purchase will probably be the last one of the year because of expenses we are expecting in December.

woensdag 9 november 2016

Recent buy: Unilever

After Donald Trump was voted the next president of the USA, the general idea was that stock markets would take a dive.
It looked like that was going to happen at the opening of the Amsterdam stock market, but with predictions of a 20 point drop (5%) the AEX is now only 1% negative.

However one of my favourite Dutch dividend stocks, Unilever (AEX: UNA) has dropped within 1 euro of its 52 week low.

So I bought another 8 shares of UNA at €37,25. Including transaction fees I paid €300,05 in total, making it €37,51 per share.

I no own 23 shares of UNA which I bought at average costs of €39,21.

This purchase will increase my annual dividend by €10,24 before taxes bringing it to €260 per year before taxes.

I hope there will be a dip at the start of the markets in the USA as well. Than I will try to make another purchase on a new position.

woensdag 2 november 2016

October divididend income

The month is passed so it is time to update my divididend income until October 2016.

Last month I received €8,66 by two companies. Whitestone REIT (WSR) gave me $0.095 per share. As I own 50 shares and am taxed 15% on dividend income I received $4,03.

Also the Coca Cola company payed me for owning their shares. They payed $0.35. Owning 17 shares my net income was $5.05.

For my first half year of investing and in an off month I am happy with this number. Coming months the dividend income will be much higher. I expect twice as much in november and three to four times as much in december.

maandag 31 oktober 2016

November/December watchlist

On the last day of October it is a good time to think about the coming months. What will my investing goals be up to the end of 2016?

I expect not to be able to invest as much as in October, with 3 buy totaling almost €800 becaus of a loan for our home we will be paying back in December. But a few 100 euros a months should be possible.

I think it is time to add at least one position to my portfolio. And I have a few companies on my watchlist.

My main focus will be on ABBVIE (ABBV) and Target(TGT). TGT is well priced at the moment with a P/E ratio of under 13 and a dividend yield of 3.3%. Also the payout ratio is around 42%, So the company has much room to keep their dividend raise streak going for a while. Theri latest dividend hike was a very nice 7%.

ABBVIE just announced another divididend raise of over 12%. However, their share price collapsed with 6% after they published their lasted figures. Their P/E ratio is just over 10 and dividend yield is now close to 4%. Before investing I should however look at their payout ratio. Comparing 2015 earnings per share with the announced annual dividend for 2017, the payout ratio is very high with 81%. 
So before investing in ABBV I shoud do some extra research. 

Looking at the dividend payout dates ABBV would be more interesting than TGT because ABBV is paying in my "off months". So an investment in ABBV will spread my dividend income better.

zondag 30 oktober 2016

Recent buy: RDSA

With the closing of October within reach I made another purchase this month. This week RDSA was pretty volatile and was dropping under €23 again. I wasn't really aiming to make another buy this month but with the current yield, and expected better Q3 report by Shell, I decided to expend my position a little bit more.

So last friday I bought another 10 shares RDS for €22,90. Including transaction fees the total costs wee €231,05 or €23,105 per share. This was just below the average costs of the previous 50 shares we already owned, which was €23,21 per share.

The new average cost per share are now €23,19. Shell annual dividends are $1,88 per share or €1,72 at the current euro/dollar rate. That brings the YOC for my RDSA shares to 7,4% and there by one of my highest yielding companies.

This buy increases my 12 month forward dividend with €17,20 to over €250 in total and just over €100 or RDSA alone.

As you can see RDS is taking up quite a big position in my portfolio. It now is time to increase other existing positions and invest in a couple of new companies.

zaterdag 15 oktober 2016

Dividend raise

Two days ago Omega Healthcare Investors announced a dividend raise of one dollarcent. Since I started investing back in march, this is the first time I am experiencing a dividend raise of one of my holdings.

Owning 20 shares of OHI this raise will "boost" my 12 month dividend with 80 cents. The 12 month OHI dividend will be $48.80, bringing the yield on costs to 6.84%.

vrijdag 14 oktober 2016

Recent buy: Unilever

Today I made another purchase on the Amsterdam stock market. After the presentations of their quarterly figures the Unilever stock took quite a hit yesterday. This morning it even dropped a little further, going below the price I set for myself to buy some more of their stock.

So today I tripled my number of UNA stocks. I bought 10 shares at a price of €39,15 per share. Including transaction fees I payed €393,58. The costs per shares were €39,36. At this price the forward P/E is 19,2.

Unilever pays a quarterly dividend of 0,3201 per share, adding another €12,80 to my 12 month forward dividend, giving it a 3,25% YOC.

I already owned 5 UNA shares, which I bought much more expensive. Due to this purchase the average share cost is €40,12 bringing the YOC to 3.19%.

With this buy the total amount of money invested in Unilever is just over €600 bringing it more in balance with most of the other investments I made so far. I am still a bit overweight in RDSA though.

Bringing the invested money over €600 and my total investments over €4.000 this also the time to start buying other companies.

zaterdag 1 oktober 2016

Dividend income september

September was the best month of dividend income yet. Still nothing too much, but all little things help. Two companies paid dividends, Royal Dutch Shell (RDSA) and Whitestone REIT (WSR).

RDSA paid $0.47 per share totaling $11.75. After tax and Euro/Dollar exchange reit I received €10.58. WSR paid $0.905 per share totaling $4.77. After tax and Euro/Dollar exchange rate I received €3.50.

Total net dividend received were €14.04, the highest monthly amount yet. How was your dividend income this month?

vrijdag 30 september 2016

Recent buy: OHI

Just at the closing of the market of September I made another purchase. I bought another 6 shares of Omega Healthcare Investors (OHI) for $35.61 per piece totaling $213.66 bringing the total amount of shares to 16. Transaction costs were €0.52.
This buy will increase my 12 month forward dividend income by $14.40 or €12,86 bringing it to €199.26.

I have bought my OHI shares in three times. The first five shares I bought at $37.20. Later I bought another 5 shares at $35.85 per share and now this purchase. Including transaction fees the average share price $36.29. With the quarterly dividend of $0.60, the YOC is now 6.6%.

If the price will stay sub $36 I will probably add some more shares of OHI to my portfolio to bring the money invested more in balance with the other companies in my portfolio.

maandag 19 september 2016

Recent buy: Whitestone REIT

I am not yet investing for a long time (since last april) my longest positions include Coca-Cola (NYSE;KO) and Royal Dutch Shell (AEX;RDSA), which are to date also my largest positions.

In august and september I started, and later expanded, a position in Whitestone REIT (NYSE; WSR). Whitestone is a fully integrated real estate investment trust that owns operates and redevelops community centered properties. An eleborate analysis you can read here. A stock price of under $15 was named in the article.

On August 12th I bought my first 16 shares for $15,06 per share, totaling €216,63 including transaction fees. However, the stock price was dropping so on august 24th I bought another 22 shares for $14,80 per share, totaling another €290,50. And two days later I bought another 12 shares for $14,55 per share.

So my total position in WSR is now 50 shares or a total investment of €663,80. 

WSR pays it's dividend on a monthly basis. It pays $0,095 per share per month. This totals my 12 month dividend income for WSR to $57 (or €50,89 at current exchange rates). 
Yield on Costs comes to 7,7%.

WSR hasn't increased it's dividend yet, but the analysis linked above shows that their first dividend hike is not far away.

However, in the last week(s) the shareprice of WSR has even dropped to sub 14 dollars, making an even higher yield possible.

zondag 14 augustus 2016

Introducing Dividend Dolphin

As a family, living in The Netherlands, we are striving to get financially independant as soon as possible so we will be able to spend our time as we see fit. While the "mandatory" retirement age is increased over and over again, Dutch retiremtentfunds are under pressure to meet pay-out requirements, we would like to pay off our mortgage as soon as possible and saving a bundle rom which we can pay our life's needs when we stop working.

We would like to do that mostly by investing in dividend growth stocks and, maybe later on, invest in real estate. Also a small amount of savings on a savings account will help too.

At the moment we are both investing in dividend growth stocks and paying off our mortgage. On the latter I blog here (in Dutch). Because of our high mortgage payments the amounts we can invest each month are nog that high yet, but by reducing those costs by paying off the house, we should be able to increase our investments eventualy. Also we can reinvest the dividends we will receive.

We started investing in March 2016 and now have a portfolio of about €3.200.