Author: Erik

Dividend Report June 2020

June was a exciting month for me and my girlfriend as we purchased a new house. As we both like to keep our fixed costs low we both decided to sell part of our stock portfolio’s to reduce the amount of mortgage needed.

As a result the estimated yearly dividend income will decrease also.

In my June numbers this is not visible yet. I received €391 in dividend and an additional €95 due to writing call options. This is 8% lower than June 2019 due to dividend suspenions at Aegon and Nordea Bank.

14 companies paid a dividend and the top 3 payers are Macebridge, Enbridge and Legal & General.

Dividend June 2020

Macerich77,05
Enbridge53,79
Legal & General52,05
DSM37,49
Royal Dutch Shell26,55
Dominion Energy25,09
Unilever18,47
Invesco17,70
Qualcomm17,39
Bank of America14,40
AGNC Investment13,85
Johnson & Johnson13,35
McDonalds12,20
Gilead Sciences12,11

New purchases due to rebalancing of portfolio

My girlfriend and me purchased a new house this month and as a result we both decided to take part of the value from our stock portfolio’s as we tend to don’t like to have high fixed costs in a mortgage.

As a result a sold some positions and also did some extra sales to buy new stock to keep a proper sector allocation.

5 new companies were added to my portfolio

Münich RE (MUV2.DE)

Münich RE is a German reinsurance company. Current yield is around 4,3%. Dividend is paid only once per year.

I purchased 10 shares in Münich RE and this should result in €98 per year in dividend income.

Tencent (NNND)

With Tencent I increase my allocation to China and the Technology sector. Tencent is a Chinese conglomerate with many different activities. Tencent is the world biggest video gaming company, but also big in social media in China with WeChat.

A minus of Tencent is that the company is difficult to comprehend as they have hundreds of minority shares in other companies.

I purchased 40 shares on the Frankfurt stock exchange. The dividend yied of Tencent is currently 0,26% so my dividend income will only increase by $5,60.

LEG Immobilien (LEG.DE)

With LEG Immobilien I add one more German company to my portfolio. LEG Immobilien is an real estate investor focussing on residential properties. LEG is owning over 130.000 residential objects in Germany.

I already own various REIT’s, but none focussing on housing. Where often the dividend of real estate investors is often higher than their EPS, this is not the case for LEG.

German companies are often conservative in their payout ratio and this also applies to LEG Immobilien. Current yield is 3,0% with a payout-ratio of 25%.

I purchased 17 shares LEG Immobilien resulting in €61,20 extra dividend income per year.

AvalonBay Communities (AVB)

With AvalonBay Communities I add a second investor in residential properties to my portfolio, but this time with exposure to the American market.

Yield of AvalonBay is currently 4,0%. As a result of the 14 shares I expect to receive $89,04 in dividend per year from AvalonBay Communities.

Gilead Sciences (GILD)

Gilead Sciences is already for a long time on my watchlist. I’m waiting for a long time in a attractive price to start a position. I like the position Gilead sciences has in the HIV market.

From an investors perspective this market is very attractive as HIV is a chronical disease and a customer will normally be a customar for live.

I purchased 30 shares Gilead Sciences which will increase my yearly estimated income with $81,60

Dividend Report May 2020

May was a month were the stock markets showed a recovery from the loses earlier this year. For me it’s still the question if this recovery will stay as it’s not possible yet to see how business results will develop next few months. The market is pricing in a fast recovery from Covid-19.

In May I received €489,36 in dividend income. This is 30% lower than the income in May 2019. This is for €217 related to positions closed positions in Flow Traders, Wereldhave, Omega Healthcare, Amsterdam Commodities en Warehouses de Pauw.

Also I missed payments from Danone and Simon Property Group which for now are delayed. Simon Property Group will decide in June what to do with the dividend.

I also miss payments from ING and Macquarie Infrastructure Company, because these 2 companies suspended their dividend.

My top 3 dividend payers are this month just as in previous month from European companies. The top 3 payers are Fortum, BMW and Bayer. All 3 pay their dividend one time per year so it’s easy to beat the companies paying a quarterly dividend and rank high on my monthly income list.

Dividend May 2020

Fortum110,00
BMW75,00
Bayer72,80
AbbVie49,16
Anally Capital41,08
Altria Group26,07
EPR Properties21,96
ASML Holding20,25
Royal Bank of Canada14,85
AGNC Investment14,53
Caterpiller13,22
PacWest Bancorp11,45
WestRock Company9,91
Apple9,09

Purchase 800 shares Aegon (AGN)

My May 202o purchase consisted out of 800 shares of the insurance group Aegon at a price of €2,453. As Aegon suspended their dividend it’s maybe a strange addition to my dividend growth portfolio. Aegon suspended their dividend just as many other European financials based on a request of the European Central Bank to keep liquidity within financial institutions while waiting to see what the impact of Covid-19 would be.

I base my purchase for a big part on the historic dividend of Aegon:

The graph above shows that the dividend of Aegon was fast above €0,20 after the financial crisis. I consider it realistic that Aegon will already start paying a dividend in the 2nd part of this year.

Based on a dividend between €0,20 – €0,31 the dividend yield based on my purchase price could be between 8% – 13%. As Aegon is normally has a payout of 50% the actual yield could be much higher as the retained profits will normally result in higher stock prices.

I understand that I maybe need to have some patience before dividend will be paid again close to historic levels, but based on the current share price in combination with historic dividends I’m happy to add some more stocks of Aegon to my portfolio.

Dividend Report April 2020

Luckily April was a way more calm month than March. The sentiment on the stock market turned and losses from April are partially offset by a raising market last month.

At the start of the year I expected to break my alltime high in monthly dividend income this month, but in reality I scored below last year. I miss payment from 8 companies, but fortunately only 2 of these companies stopped paying their dividend. From 6 other companies I expect the payment in the next few months as they were not able to get the dividend approved as their shareholders meeting was delayed.

I received payment from 16 companies for a total value of €471,04. This is 29% below last year. HSBC and Bonava are skipping their dividend. I expect a payment in May or July from Anally Capital, Aena, Altria Group, Fortum, l’Oreal and LVMH.

My dividend outlook for 2020 decreased this month again, mainly due to the dividend cut of Royal Dutch Shell. My outlook decreased from €5.207 to €4.947.

My top 3 payers are this month European companies for a change and are Givaudan, Nestlé and Ahold.

Dividend overview April:

Givaudan65,66
Nestlé61,14
Ahold46,00
Colony Capital PREF H (13-4-2020)45,00
Occidental Petroleum42,09
Colony Capital PREF I (5-6-2022)34,49
Comerica23,63
Coresite Realty22,42
EPR Properties21,79
Novo Nordisk21,62
Bank of Nova Scotia19,03
Eastman Chemical18,32
AGNC Investment15,37
Coca Cola14,62
Albemarle9,51
Lam Research6,35
Brown-Forman B3,99

Ahold Delhaize adds 8,5% to yearly dividend

Today I received the final dividend over 2019 from grocery stores operator Ahold Delhaize (Peapod, Albert Heijn, Delhaize, Stop & Shop, and I noticed the final dividend was increased by 15%.

As a result the yearly dividend is 8,5% higher than the amount of dividend paid over 2018.

My yearly dividend income increased by €6,00 as a result of this dividend increase by Royal Ahold Delhaize.

AGNC Investment cuts dividend by 25%

AGNC Investment announced a dividend cut of 25%. The monthly dividend is reduced from $0,16 to $0,12. This is old new from begin April, but I only found out now while reading some older updates

As a result my yearly estimated dividend income will reduce by $50,40.

Current yield based on the new dividend is 11,7%. My yield on cost based on the reduced dividend of AGNC Investment is 8,7%.