Author: Erik

Dividend Spotlight: National Grid

National Grid Logo

In August National Grid was my biggest dividend payer so I selected this company for the first Dividend Spotlight I publish

National Grid is operating electricity and gas networks mainly located in the UK and USA. National Grid. As system operator with regulated prices National Grid is having a nice and steady cashflow.

It’s often that utilities are regulated companies. Due to utilities often having some kind of local monopoly by being the ownly one owning a distribution network for gas or electricity, it’s common that authorities regulate the pricing these kind of companies are allowed to set.

The dividend payment frequency of National Grid is 2 times per year. 70% of their yearly dividend is paid in August. This is probably why National Grid is my biggest payer in August.

I received 2 dividend payments from National Grid this year of in total €85,70. National Grid is at the moment 1,7% of my portfolio and responsible for 1,8% of my dividend income.

Current yield of National Grid is 5,73%.

As a regulated utility the dividend of National Grid is increasing slowly, but steady. The graph below is showing the dividend history of National Grid in last few years:

The compounded anual growth rate since 2016 is 4,37%, but last 5 years the CAGR is 2,37%.

I expect an average dividend growth in the next 5 years between 2.5% – 3,0%. It’s not the biggest dividend growth in my portfolio, but it will result in a nice cashflow to reinvest.

Top 10 stock positions September 2019

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This month the value of the top 10 positions in my portfolio increased by 5,0%. Bank of America dropped from my top 10 positions and Alibaba enterred the top 10 on spot #8.

ASML Holding did increase from 3rd to 2nd position passing Enbridge on my biggest holdings list.

Basically no special events, but everything did go together with the rest of the market.

#changeNameSectorValue (€)
1(-)Royal Dutch ShellEnergy4.864
2(+1)ASML HoldingTechnology3.255
3(-1)EnbridgeEnergy3.148
4(+1)AbbvieHealthcare2.723
5(-1)FacebookTechnology2.707
6(+1)Macquarie InfrastructureIndustrials2.662
7(-1)DSMBasic Materials2.592
8(new)AlibabaConsumer Cyclical2.531
9(-1)GivaudanBasic Materials2.501
10(-1)UnileverConsumer Defensive2.451

August 2019 Dividend Report

In July I realized a dividend income of €479,59. This is 54% up from last year. I received a dividend from 15 companies this month. National Grid, Macquarie Infrastructure Company and Wereldhave are the biggest 3 payers this month.

This month I also did repay €220 extra on my mortgage above the regular monthly payments.

Dividend Income – € 479,59

National Grid67,69
Macquarie Infrastructure Company66,82
Wereldhave63,00
ING48,00
AbbVie43,48
Omega Healthcare34,56
Simon Property Group30,52
Ahold30,00
DSM17,71
Flow Traders17,50
AGNC Investment14,85
Royal Bank of Canada14,47
Novo Nordisk12,13
EPR Properties10,50
Apple8,35

Transactions:

Dividend Changes:

2019 Target Status:

  • I’m at €10.200 out of €14.400 deposit target (60,4%)
  • I’m at €3.295,03 out of €3.500 dividend received target (94,1%)
  • I’m at €459,95 income from writing options
  • I’m at €2.820 in extra mortgage repayments

Bank of Nova Scotia Increased dividend to C$0,90 per Quarter

bank of nova scotia logo

The Bank of Nova Scotia announced that the quarterly dividend will be increased with 3,4% from CAD 0,87 to CAD 0,90 per quarter.

As a result of the 32 shares I own my yearly estimated dividend income will increase by CAD 2,49.

Based on the new dividend my yield on cost will be 5,06%.

Purchase 650 shares Legal & General Group

Today I purchased 650 shares Legal & General Group against a price per share including transaction costs and stamp duty of GBP 2,21.

With this purchase my yearly estimated dividend income will increase with GBP 108,88.

Legal & General Group will pay their interim dividend in September and next month I will recieve a first dividend payment from Legal & General contributing GBP 32,05 to my dividend income this year.

The expected yield on cost based on the current dividend is 7,57%.

Legal & General Group is active as asset manager and is also the UK’s largest provider of life assurance products. Legal & General is also leading the market in managing retirement risk for pension schemes in the UK and the USA.

WDP has the intention to increase dividend from €4,80 to €5,20

Together with the publication of the 2019 interim rapport WDP announced the ambition to increase the yearly dividend from €4,80 to €5,20.

This is an increase of 8,3%. WDP also proposed a 7:1 stock split.

As a result of the 11 shares I own my yearly estimated dividend income increased by €4,40. Yield on cost of my WDP position based on the new dividend is 5,5%.

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.