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).