November Dividend Report 2018

Monthly Report November:

In November I received €155,54 in dividend payments. Previous year in November I received €40,74 so my dividend income is up 282%.

Besides my monthly deposit to my stock account I also repayed €500 extra towards my mortgage principal. As I only pay 1,99% interest this will not result in a big interest saving next year, but I enjoy the feeling that I won’t have a mortgage anymore within a few years.

This month I received payments from 7 companies. Macquarie Infrastructure Company, Omega Healthcare, AbbVie and Simon Property Group are responisble for over 80% of my dividend income this month.

This month the share prices were down a lot due to trade war fears. My China-Tech related exposure increased by purchasing Alibaba and Tencent. Also I bought 112 shares Royal Dutch Shell at the end of the month, because Royal Dutch is down over 10% since its top and I consider the dividend yield of 5,6% a decent level to buy.

Only one more month and another year has finished. I expect to realise all targets set for 2018. In the first weeks of December I will set my targets for next year.

Dividend Income – €155,54:

– Macquarie Infrastructure Company €37,03
– Omega Healthcare €30,93
– AbbVie €29,62
– Simon Property Group €28,27
– Royal Bank of Canada €13,70
– EPR Properties €9,52
– Apple €6,42

Dividend History Per Month

Transactions:

Purchase 8 shares Berkshire Hathaway
Purchase 25 shares Altria
Purchase 2 shares Boeing

Dividend Changes:

25% interim dividend increase LVMH
11,5% quarterly dividend increase AbbVie
5,1% quarterly dividend increase Brown-Forman

2018 Target Status:

I’m at €17.300 out of €18.000 deposit target (96,1%)
I’m at €1.981,06 out of €2.200 dividend received target (90,0%)
I’m at €5.900 out of €5.000 extra mortgage repayments (target reached)

October Dividend Report 2018

Monthly Report October:

In October I received €78,36 in dividend payments. Last year in October I received €25,79 so my dividend income is up 203%.

I only have 5 stocks in my portfolio paying dividend in October. So October is never a big dividend income month for me. Wereldhave, Coresite Realty and Coca Cola are over 80% of my dividend income this month.

This month the share prices were down a lot due to trade war fears. My China-Tech related exposure increased by purchasing Alibaba and Tencent. Also I bought 112 shares Royal Dutch Shell at the end of the month, because Royal Dutch is down over 10% since its top and I consider the dividend yield of 5,6% a decent level to buy.

It’s possible that I will slightly reduce my Royal Dutch Shell position if the shares are above €30. Last few years I purchased a few times Royal Dutch Shell around €25 to sell it above €30. Shell is one of the few companies in which I sometimes open a ‘trade’ position. While waiting for the price to increase I enjoy the dividend and above €30 I sell (part) of the shares.

The month I ended with a portfolio value of €59.781. So I’m down 4,6% this month. My estimated dividend income for 2018 based on my current portfolio is €2.202. The yearly estimated dividend income of my current portfolio is €2.655.

Dividend Income – €78,36:

– Wereldhave €34,65
– Coresite Realty €17,81
– Coca Cola €13,15
– EPR Properties €9,34
– Brown-Forman B €3,42

Transactions:

– Purchase 112 shares Royal Dutch Shell A
– Purchase 10 shares AliBaba Group Holding
– Purchase 30 shares Tencent

Dividend Changes:

none

2018 Target Status:

I’m at €16.950 out of €18.000 deposit target (94,2%)
I’m at €1.825,52 out of €2.200 dividend received target (83,0%)
I’m at €5.400 out of €5.000 extra mortgage repayments (target reached)

September Dividend Report 2018

Monthly Report September:

In September I received €183,36 in dividend payments. Last year in September I received €90,26 so my dividend income is up 103%.

I received dividend payments of 12 companies. Royal Dutch Shell (RDSA), Enbridge (ENB) and Dominion Energy (D) are responsible for over 50% of my dividend income this month.

This month I did make 4 purchases: 6 shares of Spanish airport operator Aena, 4 shares of technology company ASML Holding, 150 shares of Insurance company Aegon and 50 shares of the Dutch Bank ING Group. All 3 of these companies I already have in my portfolio so I increased the number of shares I own in them.

All 100 shares of Kas Bank I sold this month, because they reported disappointing results and I consider the outlook also not possitive for Kas Bank. Therefore I decided to sell the shares and invest the money from the sell in Aegon shares.

The month I ended with a portfolio value of €61.683. My estimated dividend income for 2018 based on my current portfolio is €2.163. The yearly estimated dividend income of my current portfolio is €2.442.

Dividend Income – €183,36:

– Enbridge €43,88
– Royal Dutch Shell €30,36
– Dominion Energy €21,33
– Aegon €16,80
– McDonalds €11,64
– Monmouth REIT €10,91
– Think AEX UCITS ETF €10,40
– Johnson & Johnson €9,58
– EPR Properties €9,24
– Unilever €7,74
– Boeing €5,92
– Bank of America €5,56

Transactions:

Sell 100 shares Kas Bank (EPA:KA)
Purchase 150 shares Aegon (EPA:AGN)
Purchase 6 shares Aena (BME:AENA)
Purchase 4 shares ASML Holding (EPA:ASML)
Purchase 50 shares ING Group (EPA:INGA)

Dividend Changes:

McDonalds quarterly dividend +15% ($6,60 extra yearly dividend)
WDP yearly dividend +6% (€3,30 extra yearly dividend)

2018 Target Status:

I’m at €15.950 out of €18.000 deposit target (88,6%)
I’m at €1.747,16 out of €2.200 dividend received target (79,4%)
I’m at €5.400 out of €5.000 extra mortgage repayments (target reached)

The diversification by country of my portfolio

In this post I will make an analysis of the diversification by country of my share portfolio. I will compare my diversification by country with the MSCI World Index just as when I made an analysis of the diversification per sector of my portfolio.

The breakdown per country of my portfolio

In the table below you can see the diversification per country of my portfolio:

Summary:

  • I’m overweighted in The Netherlands
  • I’m underweighted in The USA
  • I’m lacking exposure in Japan
  • Other countries have a deviation smaller than 5% versus the World Index
  • The Netherlands

    Shares from The Netherlands are 22,4% of my portfolio. In the MSCI World Index The Netherlands is 1,2%. The Netherlands is my home country so it’s easy for me to get enough information about Dutch companies and decide if I consider them good potential investments. The Netherlands is also the home country for many international companies.

    I have Royal Dutch Shell, ASML Lithography, Unilever and Aegon in my portfolio listed as companies from The Netherlands, but the majority of their income comes from other countries than The Netherlands. Also I have the Think AEX ETF in my portfolio. This EFT is fully invested in Dutch stocks.

    I don’t mind being overinvested in The Netherlands, but now I compared the share of Dutch stocks in my portfolio versus the MSCI World Index, I think I should reduce the share of Dutch stocks in my portfolio. I could sell the ETF and refrain from investments in Dutch stocks until I consider the share more in balance.

    The United States

    The USA is 48,8% versus 61,7% in my portfolio. I always had the idea that I’m overweighted in the USA and decided to mainly buy euro stocks for the last months of 2018, but compared with the MSCI World Index I’m underweighted. I guess this is mainly the result of being overweighted in The Netherlands.

    The positive thing of this analysis is that I have a decent number of American companies high on my watchlist. The devil in my head saying that I’m overweighted in USA and that I should buy euro stocks I now silenced by looking at the MSCI World Index.

    Japan

    I don’t have any stocks from Japan and Japan forms 8,4% of the MSCI World Index. I don’t see myself buying any Japanese stocks anytime soon. I simply don’t have enough knowledge to pick quality Japanese stocks. Softbank is top of mind as a big investor in Tech companies, but having just one company top of mind is not a solid basis to my investment decissions.

    I probably take it for granted that I’m not invested in Japan.

    Conclusion

    For the next year I will focus on slowly reducing the exposure in The Netherlands and I will add some more American stocks.

    August Dividend Report 2018

    Monthly Report August:

    August was an unexpectingly strong month for me with a dividend income of €310,93. My dividend income of August 2017 was €76,53 so my dividend income is up 306%. I’m very happy with this result.

    The dividend income is much higher than I expected due to the dividend payment of Flow Traders of €67,50. Flow Traders is a market maker and it did benefit a lot of the volatility in the market in Q1. This resulted in a big profit and a big dividend. Volatility is gone so I expect this was a one time extra high dividend.

    Due to this high dividend payment of Flow Traders it’s now possible I will reach the dividend income target of €2.200 I did set for this year. Based on the stocks I own and the dividend payments they have scheduled for the rest of the year I’m now expecting an dividend income this year of €2.193. I just need a few more dividend increases combined with possible dividend income from stock purchases I will make this year and I’m at the target. Still not sure I will reach the target, but at least it’s going to be very very close.

    In August I recieved dividend payments of 13 companies. Mainly responsible for the dividend growth are new positions in Flow Traders and Omega Healthcare and also increased positions in National Grid, AbbVie, Macquarie Infrastructure Company and Simon Property Group.

    This month I bought 25 shares of Unilever at a price of €48,89 including fee’s. Unilever was already on my watchlist for a long time to buy on a dip, but the share price was mainly moving in a small range. I decided to buy this month defensive consumer goods company and I decided Unilever is my choice for this month.

    I ended the month with a portfolio value of €61.378. My estimated dividend income for 2018 based on my current portfolio is €2.193. The yearly estimated dividend income of my current portfolio is €2.386.

    Dividend Income – €310,93:

    – Flow Traders €67,50
    – National Grid €37,54
    – Macquarie Infrastructure Company €36,84
    – Omega Healthcare €30,89
    – AbbVie €29,55
    – Simon Property Group €27,59
    – Amsterdam Commodities(epa:acomo) €18,00
    – Royal Bank of Canada €13,03
    – Novo Nordisk €12,06
    – ING €12,00
    – DSM €10,01
    – EPR Properties €9,50
    – Apple €6,42

    Transactions:
    Purchase 25 shares Unilever @ €48,89

    Dividend Changes:
    Royal Bank of Canada quarterly dividend +4,3% (C$2,52 extra yearly dividend)

    2018 Target Status:
    I’m at €14.450 out of €18.000 deposit target (80,3%)
    I’m at €1.563,79 out of €2.200 dividend received target (71,1%)
    I’m at €5.400 out of €5.000 extra mortgage repayments (target reached)

    Dividend Changes 2018 up to today

    I realized that I don’t have an idea how much my dividend income this year increased due to dividend changes from companies in which I own shares.

    I always adjust the dividend in my google docs file after I learn about a dividend increase or decrease, but I don’t have a total overview.

    I did make the comparison based on the following rules to keep things simple:

    – Only stocks are included which where in my portfolio at the end of 2017 which I now still own.

    – Stocks I bought in 2018 and had a dividend increase since opening the position this year are excluded.

    – I calculate the extra dividend income based on the number of shares I owned at the end of 2017.

    – I use the dividend date I have in my google docs file, no double checks

    – I use the following exchange rates to translate to EUR:

    EUR/USD 1,15
    EUR/GBP 0,90
    EUR/CAD 0,66

    Dividend increases:

    1) Abbvie – +50,0% – €16,70 dividend per year extra
    2) Aena – +69,7% – €16,02 dividend per year extra
    3) Novo Nordisk – +34,4% – €8,53 dividend per year extra
    4) DSM – +39,3% – €8,45 dividend per year extra
    5) Think AEX EFT – +15,9% – €6,50 dividend per year extra
    6) Simon Property Group – +8,1% – €4,17 dividend per year extra
    7) Apple – +15,8% – €3,48 dividend per year extra
    8) Bank of America – +25,0% – €3,44 dividend per year extra
    9) Coresite Realty – +14,4% – €3,17 dividend per year extra
    10) Unilever – +22,9% – €2,89 dividend per year extra
    11) Royal Dutch Shell – +2,7% – €2,84 dividend per year extra
    12) Aegon – +7,7% – €2,40 dividend per year extra
    13) Royal Bank of Canada – +7,7% – €1,85 dividend per year extra
    14) Omega Healthcare – +1,5% – €1,84 dividend per year extra
    15) WDP – +5,9% – €1,50 dividend per year extra
    16) National Grid – +3,0% – €1,49 dividend per year extra
    17) l’Oreal – +14,5% – €1,35 dividend per year extra
    18) ASML – +16,7% – €1,20 dividend per year extra
    19) Coca Cola – +5,4% – €1,04 dividend per year extra
    20) Johnson&Johnson – +7,1% – €0,83 dividend per year extra
    21) Macquarie Infrastructure Company – 29,6% – -€10,23 dividend per year less
    22) Wereldhave – -18,2% – €11,20 dividend per year extra less

    Macquarie Infrastructure Company (MIC) and Wereldhave were the only 2 companies in my portfolio reducing their dividend. In both cases I decided increasing the number of stocks I own after a stock price correction as a result of the communication of the dividend cut.

    MIC reduced dividend to internally fund the repurposing of a Tank Terminal after a client cancelled a contract. I considerred the selloff to big and decided and increased the number of shares MIC in 2018 from 7 to 42. Currently the yield is 8,7%.

    Wereldhave is did decide to cut the quarterly dividend from €0,77 to €0,63. I decided to increase the number of stocks I own from 20 to 55. I bought Wereldhave shares, because I considerred this stock undervalued. Wereldhave has issues with a shopping mall owned in Finland which results in negative valuation adjustments. After the stock correction due to the communication of the dividend cut I decided that I feel that the underlying assumptions I had when starting my position are not changed and bought more shares. Yield is now 7,9%.

    In total the dividend changes above are good for €68,36. When setting my target for this year of €2200 income I calculated with €76,80 in extra dividend due to dividend increases. This is 6% of the estimated yearly dividend income at the end of 2017. I’m around this number if I also take into account that some stocks I bought in the first part of 2018 also increased their dividend.

    Starting 2019 I will track dividend changes in detail so I have more information available about the development of my dividend income, but for now I’m happy with 22 companies increasing their dividend. I have 6 stocks which normally tend to announce a dividend increase in the last quarter of the year so I’m looking forward to more dividend increases this year.

    July Dividend Report 2018

    Monthly Report July:

    This month I received €98,24 in dividends compared to €63,65 last year. This is an increase of 54,3%! versus the July 2017 dividend received.

    6 Companies paid me dividend this month. The grow of dividend income is mainly due to an increased position in Wereldhave and Coresite Realty. Also Coca Cola is a new position adding to the growth of my dividend income.

    This month I did buy 23 shares Danone. I added Danone to my portfolio, because I wanted to add some defensive consumer goods companies to my portfolio from the eurozone. Also a few days later a doubled my position in Facebook from 8 to 16 shares. The Facebook share purchase is an opportunistic purchase for me. The share price dropped 20% after the publication of the 2nd quarter results.

    The 2nd quarter numbers weren’t bad, but Facebook mentioned lower gross margin expectations for the near future. I still believe in the strong cashflow generating abilities of Facebook so I added a few more shares.

    I ended the month with a portfolio value of €58.797.

    Dividend Income – €98,24:

    – Wereldhave €34,65
    – Macquarie Group €20,25
    – Coresite Realty €17,64
    – Coca Cola €13,06
    – EPR Properties €9,25
    – Brown-Forman B €3,38

    Transactions:
    Purchase 23 shares Danone @ €65,65
    Purchase 8 shares Facebook @ $176,40

    Dividend Changes:
    Bank of Americe quarterly dividend +25% ($5,16 extra yearly dividend)
    Simon Property Group quarterly dividend +2,6% ($3,20 extra yearly dividend)

    2018 Target Status:
    I’m at €12.650 out of €18.000 deposit target (70,2%)
    I’m at €1.252,86 out of €2.200 dividend received target (56,9%)
    I’m at €5.400 out of €5.000 extra mortgage repayments (target reached)

    Mid-year review 2018

    Recap

    – Deposited €11.900 in my broker account compared to €9.000 target

    – Repayed €5.400 extra mortage above regular monthly repayments vs. a target of €5.000

    – Received €1.154 dividend vs. a mid year target of €1.100

    – Overall I’m on track reaching my targets set for this year

    Deposits

    I’m well above my target set for deposits to my broker account. This is mainly due to extra income as a result of extra salary as a result salary increases as set in the collective labour agreement (CAO) as negotiated by the unions. I never take these salary increase into consideration while determining my deposit account, because it’s my experience it can sometimes take months or even well over a year before the employers and labour unions reach an agreement.

    Also some small tax changes resulted in a small increase of my income after tax and as a result a bit more spare money to deposit in my broker account, because I’m still happy with the savings balance I have and still do deposit all my spare money into my broker account.

    Extra mortgage repayment
    The target of repaying €5.000 extra above my regular monthly installments was this year more challening. Normally I have this amount almost available by the payment of holiday money from the company I work for in May and the tax return I receive from the Dutch government.

    In The Netherlands it’s a common practice to receive 8% of your yearly salary in May as holiday money above the regular paycheck. This not changed in this year. Normally I receive a tax return in May, because interest on mortage is tax deductable in The Netherlands. It’s possible to receive every month 1/12th of this tax return, but I always prefer to receive the return fully in May.

    This year my tax return is only halve of the return of previous year. This is because my assets did grow a lot last few years and in The Netherlands there is a tax on assets. As a result of the grow in value of my share portfolio and value of my house the tax on assets did eat a big part of my mortgage interest tax return.

    I did still repay €5.000 in May as extra mortgage repayment by adding €1.500 of free income I would normally have added as extra deposit in my share portfolio, because I consider it important to repay my mortage much faster than the standard of 30 years we have in The Netherlands.

    The extra mortgage repayment has besides a lower debt also as a result that my monthly payment to the bank is reduced with €30 a month.

    Dividend income
    Dividend income is on track with 52,5% of my full year target reached. I’m only slightly above 50% while i did receive yearly dividend from companies like Aena, ASML, WDP and Fortum. Based on current dividend levels my full year dividend income is €2.229. This full year dividend income is also taken into account the shares I for example bought this month and for which I won’t receive dividend in the first months of this year.

    To reach my full year target I’m still dependable on extra shares I buy in the 2nd halve of this year else the set target of €2.200 to receive this year will be challenging to reach.

    I did set a challenging target, but because of a dividend cut of Macquarie Infrastructure Company and euro-dollar exchange rate of over 1,21 compared to around 1,21 in the first halve of 2017 did result in on average 11% lower dividend income. On the otherhand I did mainly buy American shares in the first part of 2018 so I get 11% more shares just because of the dollar-euro exchange rate…

    Fact Five

    1) Largest Position: AbbVie €2.920

    2) Largest yearly dividend income: Enbridge €132

    3) Estimated dividend on a yearly basis €2.229

    4) Largest sector: REIT 22,1% of portfolio

    5) Largest currency: USD 59,8%

    Wishlist for 2nd part of year

    1) Increasing share of eurozone investments

    2) Doubling position in Unilever to increase exposure in Consumer Staples sector.

    3) Increasing ING and Aegon positions, because these stocks are now very small positions in my portfolio while I bought them to add a decent cashflow in my portfolio. Due to share price increases and new deposits ING (5,33%) and Aegon (5,35%) are now a bit too small positions.

    4) Spending time on researching the German stock market. One of the biggest market in Europe, but I have no exposure in German stocks. I plan to reserve time to do research on the German market.

    5) Analyzing some Euro dividend ETF’s to get some inspiration finding eurozone dividend stocks.

    Final Thoughts
    Reaching my dividend income target for this year will be a challenge. Also because some shares very high on my watchlist are euro shares 1 yearly dividend payment paid in the first part of the year. Buying these shares will not result in extra dividend income this year, but I not going to skip these shares if still high on my watchlist just because it will not help me reaching my short term dividend income taret, the long term is more important.

    June Dividend Report 2018

    Monthly Report June:

    This month I received €222,43 in dividends compared to €53,59 last year. This is an increase of 315%!

    Mainly new positions increased my dividend income this month. With Royal Dutch Shell, Enbridge, Think AEX ETF and Dominion Energy responsible for over 60% of my dividend.

    This month I did use my monthly deposit to buy 12 shares AbbVie and 5 shares McDonalds. With the purchase of 12 shares AbbVie, AbbVie is now the largest position in my portfolio. So I did not open any new positions, but only increased current positions I have.

    I ended the month with a portfolio value of €57.065.

    Dividend Income – €222,43:

    – Royal Dutch Shell €48,13
    – Enbridge €39,92
    – Think AEX UCITS ETF €24,44
    – Dominion Energy €21,61
    – Aegon €16,80
    – DSM €16,51
    – Johnson & Johnson €11,43
    – Monmouth REIT €11,00
    – EPR Properties €9,32
    – Unilever €7,74
    – Boeing €5,87
    – McDonalds €5,23
    – Bank of America €4,43

    Transactions:
    – Purchase 12 shares AbbVie @ $96,40
    – Purchase 5 shares McDonalds @ $162,82

    Dividend Changes:

    2018 Target Status:
    I’m at €11.900 out of €18.000 deposit target (66,1%)
    I’m at €1.154,63 out of €2.200 dividend received target (52,5%)
    I’m at €5.400 out of €5.000 extra mortgage repayments (target reached)

    May Dividend Report 2018

    Monthly Report May:

    May is another record dividend income month for me! This month I received €328,19 in dividends compared to €124,24 last year. This is an increase of 164%!

    New positions in WDP, Unibail-Rodamco, Kas Bank, Macquarie Infrastructure Company and Amsterdam Commodities made a lot of difference.

    This month I made many changes to my portfolio. When I started building my portfolio I did spread my monthly deposit over different purchases to reach a diversified portfolio faster. As a result I still have a few very small positions. This month I sold some small positions from companies which are not scoring high on my watchlist which means I (probably) won’t increase the size of the position anytime soon.

    I also sold Macquarie Group LTD, because for me as Dutch investors it’s hard to find interesting articles and analysis about this company which keep me well informed about this company. I only did read publications by Macquarie Group itself and I prefer to read articles from other sources also to be able to read critical feedback about the company so I can sharpen my opinion and knowledge about a company. For this reason I now also added to my personal investing guidelines a rule about only investing in companies where I can easily gain access to articles and analysis.

    This month I also paid an extra €5.000 into my mortgage loan. This will result in less debt and €360 per year in less interest payments.

    I ended the month with a portfolio value of €54.581.

    Dividend Income – €328,19:

    – WDP €49,50
    – Unibail Rodamco €43,20
    – Macquarie Infrastructure Company €35,64
    – Amsterdam Commodities €31,50
    – Kas Bank €31,00
    – Omega Healthcare €29,51
    – ING €21,50
    – AbbVie €18,66
    – Flow Traders €17,50
    – Simon Property Group €13,36
    – Royal Bank of Canada €13,07
    – EPR Properties €9,16
    – ASML €8,40
    – Apple €6,19

    Transactions:
    – Purchase 30 shares Dominion Energy @ $65,19
    – Purchase 17 shares Coca Cola @ $42,20
    – Purchase 10 Coresite Realty @ $103,51
    – Purchase 8 Simon Property Group @ $154,23
    – Purchase 10 Enbridge @ $32,98
    – Sell 10 shares Macquarie Group LTD @ AUD 111,60
    – Sell 45 shares Ryanair @ €15,49
    – Sell 3 shares Stamps.com @ $248,05
    – Sell 3 shares Berkshire Hathaway @ $200,14
    – Sell 104 shares Iberdrola @ €6,55

    Dividend Changes:
    – Apple quarterly dividend 15,9% up from $0,63 to $0,73 (+$4,00 yearly div)
    – WDP yearly dividend 5,9% up from €4,25 to €4,50 (+€2,75 yearly div)
    – DSM yearly dividend 5,7% up from €1,75 to €1,85 (+€1,30 yearly div)
    – National Grid final dividend 4,6% up from 29,1p to 30,44 p (+€1,53 yearly div)
    – Coresite Realty quarterly dividend up 5,1% from $0,98 to $1,03 (+$4,00 yearly div)

    2018 Target Status:
    I’m at €10.400 out of €18.000 deposit target (57,8%)
    I’m at €932,20 out of €2.200 dividend received target (42,3%)
    I’m at €5.400 out of €5.000 extra mortgage repayments (target reached)