Purchase 60 shares Colony Capital Pref H

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Recently I purchased 60 preferred shares Colony Capital H at a price of $22,48. Coupon of this preferred stock is 7,125%. As a result the yearly dividend paid on this shares is $1,78125.

At the current stock price of $22,48 this is giving me a yield of 7,92%.

The preferred H stocks are callable from 13 April 2020 so this is giving me a realistic chance that within 9 months this preferred stock will be redeemed against $25 which is over 11% above the current price.

With this purchase I add a quarterly dividend of $26,72 to my portfolio, but as a result of a possible redemption in April 2020 it’s possible that I will only enjoy the dividend payment for 3 quarters.

Top 10 stock positions August 2019

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Last month there was not much change in the top 10 of my portfolio. The Value of the positions decreased as did most stocks in the market.

AbbVie lost 2 positions, because it declined a bit more than ASML and Facebook.

Bank of America enterred the number 10 position in my portfolio. It’s the first time I have a bank stock in the top 10 of my portfolio.

#changeNameSectorValue (€)
1(-)Royal Dutch ShellEnergy4.780
2(-)EnbridgeEnergy3.019
3(+1)ASML HoldingHealthcare2.873
4(+1)FacebookTechnology2.684
5(-2)AbbvieTechnology2.634
6(+1)DSMIndustrials2.569
7(-1)Macquarie InfrastructureBasic Materials2.516
8(-)GivaudanBasic Materials2.390
9(-)UnileverConsumer Defensive2.286
10(new)Bank of AmericaConsumer Cyclical2.276

Sold 58 shares Omega Healthcare Investors

This week I sold all my 58 shares Omega Healthcare Investors at a price of $38,26. As a result of this sale I reduce my yearly estimated dividend income by $136,56.

My average purchase price of the Omega Healthcare shares is $27,90 so I’m removing a 9,5% yield on cost position from my portfolio.

My return on investment in euro’s:

Purchase 58 shares-1.365,27
Sold 58 shares1.974,22
Dividend220,04
Profit828,99
Profit %60,7%
ROI per year31,9%

I decided to sell Omega Healthcare mainly because I don’t feel comfortable with the performance of the tenants of Omega Healthcare Investors. Tenants of Omega Healthcare are companies running skilled nursing facilities and many operators in this market are struggling to stay profitable.

A few times already Omega Healthcare Investors adjusted their contract with major tenants resulting in reduced rent income or taking over capital investments which normally were paid by the tenant.

As a result the payout ratio of Omega Healthcare is very high at the moment and as I see it realistic that some more rent discounts have to be given to struggling tenants I decided to close this position.

I will miss the steady dividends I enjoyed since 2017, but I’m not feeling comfortable by the performance of the tenants of Omega Healthcare Investors so I’m happy to close the position and realize the capital gain.

July 2019 Dividend Report

In July I realized a dividend income of €298,16. This is 204% up from last year. This big increase is mainly realted to new positions in Unibail-Rodamco-Westfield, Anally Capital and some small positions in preferred stocks from Colony Capital and National General Holdings.

I got paid in July by 13 different companies with Unibail-Rodamco-Westfield, Anally Capital and Altria Group almost accounting for 50% of this income.

Besides the dividend income I made €26,50 from writing a put option ING Bank.

Dividend Income – € 298,16:

Unibail-Rodamco-Westfield81,00
Anally Capital40,43
Altria Group24,25
Coresite Realty21,67
Colony Capital PREF I19,84
Colony Capital PREF H19,78
Bank of Nova Scotia18,91
HSBC17,44
AGNC Investment14,93
Coca Cola13,82
National General Holdings PREF O12,07
EPR Properties10,33
Brown-Forman B3,68

Option Income – €26,50:

  • ING P10.50 19JUL19 – €26,50

Transactions:

Dividend Changes:

2019 Target Status:

  • I’m at €8.700 out of €14.400 deposit target (60,4%)
  • I’m at €2.815,44 out of €3.500 dividend received target (80,4%)
  • I’m at €459,95 income from writing options
  • I’m at €2.600 in extra mortgage repayments

2,44% Dividend Increase Simon Property Group

Recently Simon Property Group announced an 2,44% increase of their quarterly dividend. The dividend got increased from $2,05 to $2,10 per quarter.

As a result of the 16 SPG shares I own my yearly estimated dividend income will increase by $2,80.

My yield on cost based on the new dividend is 5,12%.

Purchase 24 shares Wereldhave

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This week I bought 24 shares Wereldhave at a price of €22,31. I now have in total 100 shares Wereldhave. Wereldhave is currently paying a dividend of €0,63 per quarter so the current yield is 11,3%.

Wereldhave is a Dutch REIT opearting retail property. The price of Wereldhave is under pressure for some time as Wereldhave is mainly operating shopping centers within residential area’s of medium sized cities. Investing in these kind of shopping centers is not popular at the moment.

Based on the high discount to NAV and high yield I consider this price level a good level to make a small purchase and reduce the average purchase price of my Wereldhave position.

With this purchase I increase my yearly estimated dividend income by €60,48.

Top 10 stock positions July 2019

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This month not much happened in the top 10 positions I hold in my portfolio. In general it was a good month for stocks. The S&P 500 changed this month +6,9%.

AbbVie increased from 10th biggest position to 3rd position. This is because I decided to purchase 10 shares AbbVie after the price dropped as a result of the takeover of Allergan.

Macerich dropped out of the top 10 and got replaced by Alibaba. Value of Macerich dropped 6% this month. It’s a funny coincidence that Macerich gets replaced by Alibaba, because prices of REIT stocks in underpressure because of eCommerce threats and Alibaba is one of the tech giants who are big in online retail.

The value of my Facebook position increased 11% and is this month in the top 10 the biggest value increase.

The Top 10:

#changeNameSectorValue (€)
1(-)Royal Dutch ShellEnergy5.368
2(-)EnbridgeEnergy3.171
3(+7)AbbvieHealthcare2.876
4(-)ASML HoldingTechnology2.756
5(+1)FacebookTechnology2.715
6(-3)Macquarie InfrastructureIndustrials2.633
7(+2)DSMBasic Materials2.500
8(-)GivaudanBasic Materials2.477
9(-2)UnileverConsumer Defensive2.410
10(new)Alibaba GroupConsumer Cyclical2.383

10 dividend stocks adviced by Van Lanschot Bank Part 2

A few days ago I coverred the the first 5 dividend stocks adviced by Van Lanschot Bank. In this article I will cover the 2nd 5 adviced stocks.

6. Bayer:

  • Dividend: €2,80
  • Yield: 4,68%
  • Payout ratio: 180%
  • 5 Yr Div Growth: +24%
  • Payout Frequency: yearly
  • P/E: 58,27
  • ROE: 2,32%
  • ROA: 2,48%
  • Current price vs. 52 weeks high: -39%

I already have Bayer in my portfolio. The stock price and EPS is under pressure as a result of a judgment by a court of first instance in the United States in connection with glyphosate / Roundup. The potential claims to be paid regarding Roundup is keeping the stock price of Bayer under pressure.

The market capitalisation of Bayer declined from €86B at the start of 2018 to €54B this year. After the judgement I decided to start initiate a position in Bayer. I don’t expect that the price will recover short term, but at a yield of 4,68% I don’t mind waiting for better times.

7. Intertrust:

  • Dividend: €0,65
  • Yield: 3,55%
  • Payout ratio: 65%
  • 5 Yr Div Growth: N/A (only 3 listed since 2015)
  • Payout Frequency: twice per year
  • P/E: 18,27
  • ROE: 12,17%
  • ROA: 4,89%
  • Current price vs. 52 weeks high: -2%

Intertrust is best known for its fiduciary services, which includes tax, trust, business management and outsourcing processes. It is the largest trust office in the Netherlands, measured by number of shell corporations managed. So a lot of tax is avoided optimalized by services of this company.

There is a steady demand for the services of Intertrust and they service 50% of the fortune global 500 companies.

8. Ahold Delhaize:

  • Dividend: €0,70
  • Yield: 3,50%
  • Payout ratio: 45%
  • 5 Yr Div Growth: 46%
  • Payout Frequency: yearly
  • P/E: 12,96
  • ROE: 12,52%
  • ROA: 4,27%
  • Current price vs. 52 weeks high: -16%

Ahold Delhaize is based on supermarket marketshare the 4th supermarket of Europe and the 5th in the United states. Ahold Delhaize is operating over 6.500 stores and is also operating several eCommerc formats.

I’m myself a loyal customer of bol.com an online retailplatform owned by Ahold Delhaize. Just as many other retailers the price of Ahold Delhaize is often under pressure by fears of eCommerce hurting the sales.

9. HP Inc:

  • Dividend: $0,64
  • Yield: 3,07%
  • Payout ratio: 25%
  • 5 Yr Div Growth: 143%
  • Payout Frequency: quarterly
  • P/E: 8,59
  • ROE: n/a%
  • ROA: 8,28%
  • Current price vs. 52 weeks high: -22%

At position 9 it’s the first American company on the list of Van Lanschot Bank. Van Lanschot is advicing HP for it’s strong position in the high-end printer technologie.

10. Roche:

  • Dividend: CHF 8,70
  • Yield: 3,21%
  • Payout ratio: 71%
  • 5 Yr Div Growth: 9%
  • Payout Frequency: yearly
  • P/E: 21,52
  • ROE: 36,6%
  • ROA: 15,22%
  • Current price vs. 52 weeks high: -7%

Roche is a pharma giant with a strong position in the market. The ROE they are able to earn on their equity is very impressive.

10 dividend stocks adviced by Van Lanschot Bank Part 1

I’m following various news sources to stay informed about developments in the market. This week I read an article in the eMagazine of Van Lanschot Bank were they are coverring 10 dividend stocks they consider attractive at this moment. Disclaimer: Van Lanschot is a Dutch bank so the article is in Dutch.

Often these kind of articles are not really giving me any new insights, but this article was refreshing. The reason I consider this article refreshing is that it has a lot of European stocks in their list of top 10 attractive dividend stocks.

On the internet it’s really easy to stay informed about American stocks, but it’s way more challenging to find nice articles about European stocks.

Inspired by this article I decided to take a look at the companies listed in this article. I will cover the 10 stocks from the list below in several posts.

I will cover the 10 companies on the Van Lanschot list in 2 articles and will also add a follow up where I compare these companies with comparable companies in my portfolio.

The comparison is for challenge myself in determining if the comparable stocks I have in my portfolio are still of the same quality level as I when I made the purchase decision.

1. UBS Group AG:

  • Dividend: CHF 0,70
  • Yield: 5,91%
  • Payout ratio: 65,4%
  • 5 Yr Div Growth: +40%
  • Payout Frequency: yearly
  • P/E: 11,1
  • ROE: 7,61%
  • ROA: 0,43%
  • Current price vs. 52 weeks high: -28%

This stock indeed looks attractive on first glance. I will add UBS Group to my watchlist. I’m curious how this stock will compare with other banks in my portfolio.

The yield is attractive especially, but the payout ratio is somewhat high I think. I didn’t know that return on assets of a bank is this low.

I have 6 banks in my portfolio so I’m curious how the financials of UBS compare with the financials of the banks I already own.

2. Royal Dutch Shell:

  • Dividend: € 1,65
  • Yield: 5,73%
  • Payout ratio: 58,3%
  • 5 Yr Div Growth: 0%
  • Payout Frequency: quarterly
  • P/E: 10,2
  • ROE: 11,97%
  • ROA: 5,02%
  • Current price vs. 52 weeks high: -6%

I have Royal Dutch Shell in my portfolio. It’s actually my biggest holding. Actually there are only 3 companies in my portfolio which resulted in a higher profit than Royal Dutch Shell.

It’s a steady company and bringing in a nice steady flow of dividends. The only thing I would like to see is an increase in dividend.

3. Banco Santander:

  • Dividend: € 0,23
  • Yield: 5,45%
  • Payout ratio: 53,1%
  • 5 Yr Div Growth: -61%
  • Payout Frequency: quarterly
  • P/E: 9,6
  • ROE: 8,48%
  • ROA: 0,62%
  • Current price vs. 52 weeks high: -15%

Again a bank just as UBS Group where the payout and yield is looking attractive. I’m not understanding yet why the 5 year dividend growth is negative.

Scrolling through annual reports I see that the dividend got reduced after issuing new shares to increase the capital, but I can only find a reduction from 60 to 40 cents. All other metrics are looking comparable with UBS Bank Group.

Part of the dividend is paid as stock dividend.

4. Schlumberger:

  • Dividend: $ 2,00
  • Yield: 5,11%
  • Payout ratio: 138%
  • 5 Yr Div Growth: +20%
  • Payout Frequency: quarterly
  • P/E: 28,0
  • ROE: 5,62%
  • ROA: 2,72%
  • Current price vs. 52 weeks high: -42%

Nice yield, but if I take a look at the profit figures of last few years this company is feeling to cyclical for me. After reading their website I still don’t really have a good insight in what they exactly do and why they are unique in this. Not putting this one on my watchlist.

The payout is above 100% for a few years so I’m not sure how safe the dividend is. Bert from DividendDiplomats has a interesting article about the question if Schlumberger’s dividend is safe.

5. Telefónica:

  • Dividend: € 0,40
  • Yield: 5,41%
  • Payout ratio: 66%
  • 5 Yr Div Growth: +14%
  • Payout Frequency: yearly
  • P/E: 12,1
  • ROE: 11,52%
  • ROA: 2,98%
  • Current price vs. 52 weeks high: -8%

I don’t have a telecom company in my portfolio yet so I’m definately interested to add one if I see a nice opportunity.

The reason why I don’t have a Telecom company in my portfolio is that most of them don’t show impressive dividend growth. Also Telefónica only raised their dividend with 14% in a 5 year time frame.

The ROE and P/E is attractive, but I tend to like it more to add stocks which are preferably well below their 52 weeks high.

Later this week I will add part 2 of this article. If you have any comments about these 5 companies or if you know a better alternative please let me know.