Balancing Legal & General PLC and Purchase Averaging Down Taubman Centers

Today I sold 280 out of the 650 shares Legal & General I owned. This is balance this position in my portfolio as the weight of this position got relatively big due to recent price increases.

I purchased my 650 shares Legal & General Plc at the end of August for a price of GBX 219,60. I now sold part of my position for GBX 318,50. This is an increase of 45%. GBP/EUR exchange rate resulted in another 9% profit.

When I started this position the yield of Legal & General Plc was 7,57%. Against the current stock price the yield is 5,83%. For me a reason to balance this position back to it’s original value.

By selling 280 shares my yearly estimated dividend income decreases by GBP 46,90 / €56,10.

With the proceeds from the sold Legal & General Plc shares I doubled my position in Taubman Centers by purchasing 35 shares at a price of $29,98.

Where I was very lucky in the timing of my Legal & General purchase, my timing of buying Taubman Centers was simply unlucky. End July I purchased 35 shares with an average purchase price of $40,78. Today i doubled my position against a 26,5% lower price.

As a result of doubling down the average purchase price of my position in Taubman of 70 shares declined from $40,78 to $35,38.

By adding 35 shares Taubman my yearly estimated dividend income based on the current dividend will increase by $94,50 / €84,82.

Purchase 36 shares Delta Airlines

Last week I purchased 36 shares Delta Airlines at a price of $56,42. I finished this transaction by selling 26 shares of the ETF VanEck AEX. VanEck AEX is an ETF investing in the AEX index which is composed of Dutch companies.

I already have positions in ASML Holding, Unilever, Shell, ING, DSM, Ahold, Unibail-Rodamco-Westfield and Aegon and these companies are over 60% of the AEX index. I decided to sell my last ETF and use the proceeds to initiate a position in Delta Airlines.

By closing my position in VanEck AEX my yearly dividend income will decrease by €52,78. This will be offset my $58,03/€52,75 dividend income from Delta Airlines.

Delta Airlines is currently paying a quarterly dividend of $0,403. Based on my purchase price the yield on cost is 2,86%.

Purchase 540 shares Royal BAM Group

Last week I purchased 540 shares of Dutch smallcap Royal BAM Group for a price of €2,56. BAM is a Dutch construction company with a value below €1 billion. Stock price is down from €4,40 earlier this year as a result of lot’s of bad news on several extra charges they had to take regarding the construction of a sea lock in the Dutch city IJmuiden. This project was contracted against a fixed fee so all extra costs are taken bij Royal BAM Group and the partner in the IJmuiden sea lock joint venture Volkerwessels.

For me it feels like this is a good moment to invest in this cyclical company. Based on the current dividend of €0,14 the yield is 5,47%. Dividend is not stable as profits of a construction company are also not stable. Based on Q3 results I expect a dividend of €0,10 for next year giving a yield of 3,9%.

Last 10 years the average dividend per year of Royal BAM group was 7,9 cents including 3 years with none or just a few cents dividend. Based on the average dividend of 7,9 cent per year the current yield would be 3,1%. Over bookyear 2020+ I expect dividends in the range of €0,15 – €0,25 based on the results of this year excluding 75% of the extra write-offs booked regarding loss making projects this year.

This is a opportunity investment which will probably be a few years in my portfolio, but I don’t expect this will be a long term buy and hold position. I tend to prefer stable buy and hold positions, but this based on high valuations in the market I preferred this purchase above other companies on my watchlist.

With this purchase my yearly estimated dividend income will increase by €54.

Purchase 27 stocks Albemarle Corporation

Last week I used the proceeds which I got from selling my Warehouses de Pauw shares to buy 27 Albemarle Corporation at a price of $65,36.

Albemarle Corporation is active in the specialty chemicals market. Albemarle Corporation is having a leading position in lithium, bromine and refining catalysts. Lithium is the biggest income and profit course for Albemarle.

Albemarle is currently paying a dividend of $1,47 per share so as a result the the yield on cost for me is 2,25%. As a result of this purchase my yearly estimated dividend income will increase by $39,69.

Purchase 38 shares Carnival Corp

Last week I sold 105 shares Monmouth Real Estate and with the proceeds I purchased 38 shares Carnival Corporation at a price including transaction costs of $44,56.

Carnival Corporation is a British-American cruise operator. They are operating a fleet of over 100 vessels across 10 different cruise line brands.

Carnival Corporation is currently paying a dividend of $2,00 per year. As a result my yield on cost is 4,48%. With this purchase I add $72 to my yearly estimated dividend income.

Purchase 30 shares Monmouth REIT

Today I purchased 30 shares Monmouth REIT at a price of $14,41. I now own 105 shares with. With this purchase my average purchase price declined from $16,23 to $15,71.

At the moment Monmouth is paying a yearly dividend of $0,68 per share. This purchase of 30 shares will increase my yearly estimated dividend income with $20,40.

Since starting a position in Monmouth I received €92,37 in dividends.

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.

Purchase 60 shares Colony Capital Pref H

This image has an empty alt attribute; its file name is colony-capital-logo-1024x215.png

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.