Purchase 30 shares Dominion Energy

This week I bought 30 shares Dominion Energy at a price of $65,19 per share. Dominion Energy is currently paying $3,34 in dividends per year. The yield on cost of the Dominion Energy purchase is currently 5,1%.

My yearly estimated dividend income will increase with $100,2 or €83,50 against the current USD/EUR exchange rate.

Dominion Energy is currently 23% below the 52 weeks high reached in December 2017. The share price of Dominion Energy did start to go down since an all stock merger with Scana Energy was announced. Scana shareholders will receive 0.6690 shares of Dominion Energy common stock for each Scana share.

Scana is in financial problems due to a failed project regarding the development of a nuclear power station. Dominion Energy share price is probably under pressure due to investors expecting a high risk on claims for Scana, but it seems that Dominion Energy has itself shielded against liabilities regarding this project due to setting as requirement for the merger that the transaction is contingent upon South Carolina approval of proposed nuclear solution

I considered buying Scana shares to take advantage of the discount compared the merger offer, but at the moment I consider this not in line with my risk profile, because if the merger fails it brings a high risk of banktruptcy for Scana.

Purchase 50 shares Flow Traders

This week I bought 50 shares of Flow Traders at a price of €32,44 per share. Current yearly dividend is €0,65 per share so with this purchase I add €32,50 to my yearly estimated dividend income.

Flow Traders is liquidity provider specialized in exchange traded products. I bought the shares of this company, because I expect that they will continue to benefit from the current volitility on the stock exchanges. The income of Flow Traders is mainly the spread between the bid and sell rate of exchange traded products. Due to the recent volatility in the market the first quarter net profit increased from €13,6 million 1Q17 to €109,7 million in 1Q18. This and EPS of €2,36 which brings the PE ratio just based on the Q1 results on 13,7.

I expect that the stock exchanges stay volatile for some more months at least and expect Flow Traders to be a good addition to my share portfolio. Although this stock will be cyclical and EPS will vary a lot based on volumes on the various exchanges where Flow Traders is active.

Yield on cost with the current dividend will be 2,00%.

Sell 200 shares WPG and Purchase 48 shares Enbridge

Today I sold the 200 shares Washington Prime Group which I purchased just about 2 weeks ago. Why? Reuters publiced this article at the 3rd of April.

This article was quoting unnamed sources telling that Washington Prime Group and Namdar Realty are supposedly preparing a bid on retail chain Bon-Ton Stores to save Bon-Ton from banktruptcy. The reason to acquire Bon-Ton would be stay in control to probably be able to more smoothly manage the process of closing the Bon-Ton store to avoid immediant vacancies in their malls.

The Reuters article with unnamed sources was followed up by a publication on the 10th of April by Bon-Ton about a letter of intent received from WPG and partners.

According to the February Investor Update WPG is owning 13 Bon-Ton rented stores. These stores are 0,9% of the annualized base rent.

I personally don’t feel comfortable by the idea that a real estate company is taking over a tenant to keep operating their stores to avoid vacancies. As investor I of course love a management trying to keep the occupancy rate high, but I don’t believe that the management of a real estate company can make a retailer perform better. At this moment I don’t have any information available about the capex / working capital which WPG would put into Bon-Ton.

For me reason to already sell this stock after just owning it for a few weeks. I keep this stock on my watchlist and I will evaluate again to take a position when more facts are available.

My yearly estimated dividend income will drop with $200 as a result of selling the WPG shares, but I don’t feel comfortable keeping this position at the moment.

EDIT:
Just short after selling the shares a court ruling could make it less likely Bon-Ton will be taken over by a combination of Namdar Realty, WPG and asset manager DW Partners. Still not enough information available for me to take back my position in WPG.

I bought 48 shares of Enbridge against a price of $31,98 with the proceeds from the 200 WPG shares I sold. At the start month I made my first purchase of Enbridge shares I now own 90 shares Enbridge.

My yearly estimated dividend income is increasing with $100,54 as a result of this purchase.

Purchase 5 shares Johnson & Johnson

Today I bought 5 more shares of Johnson & Johnson at a price of $126,9. My total number of J&J shares is now 15. With this purchase my average cost of J&J is decreasing from $132,69 to $ 130,76. J&J is down almost 15% down from a 52 week high and moving at a 52 weeks low price so I decided to buy a few more shares.

The estimated yearly dividend of Johnson & Johnson is $3,36 so the purchase of 5 shares will increase my yearly estimated dividend income with $16,80.

The current yield of Johnson & Johnson is 2,65%.

Purchase 8 shares AbbVie

This week I purchased 8 additional shares AbbVie at a price of $95,85. This brings my total position in AbbVie on 23 shares. With this purchase my yearly estimated dividend income increased with $7,96.

AbbVie is down 23% from the high course of $123,21 reached at the end of January. This is mainly due to Abbvie backing away from pursuing accelerated approval for Rova-T after disappointing mid-stage data in third-line lung cancer. As I didn’t want to put my full monthly deposit in the speculative purchase of Washington Prime Group, I decided to also buy a few additional shares of AbbVie now the share price is down a bit.

Current yield of AbbVie based on a quarterly dividend of $0,96 is 4,0%.

Purchase 200 shares Washington Prime Group

Today I bought 200 shares of Washington Prime Group at a price of $6,21 per share. It’s a more speculative purchase.

Washington Prime Group is a REIT which invests in shopping centers and is a spinoff from Simon Property Group. Washington Prime Group is disfavored in the market at the moment due to amazon fears. Washington Prime Group is aggressively working on the traffic in the malls they own by converting them to local dominant shopping centers by attracting entertainment and foot tenants. They try to increase the traffic by offering a combined shopping and leisure experience.

Washington Prime Group has a dividend of $1,00 per share per year at the moment. This results in a dividend yield of 16,1%. This insane yield is a clear warning sign that the market is expecting a dividend cut. I picked up a few shares as a speculative investment. Washington Prime Group is after reaching a 52 weeks high $9,58 in July down 35% to $6,21.

For me it feels like the market did overreact to this REIT, but I know that in investing feeling is not always the best advisor. Nevertheless I added 200 shares to my portfolio which at the current quarterly dividend of $0,25 brings in an estimated yearly dividend income of $200.

Purchase 35 shares Wereldhave

At the begin of February Wereldhave announced a dividend reduction to fund internal projects. The dividend was reduced from €3,08 to €2,52. A reduction of 19%. As a result of the dividend cut the share price went down from €40 to €30. A correction of 25%. At a price of €30 the expected dividendyield is 8,4%.

Today I decided to buy 35 shares Wereldhave at a price of €30,73. The expected yield on cost of these shares will be 8,2%. With this purchase I add €88,20 in yearly expected dividend income to my portfolio.

Purchase of 8 shares Unibail-Rodamco

Today I bought 8 shares Unibail-Rodamco at a price of €187,00. The shares have a dividend outlook for 2018 of €10,80 so the estimated yield on cost will be 5,77%. Last few weeks the share price of Unibail-Rodamco decreased from €224 on 6 december to €187 today. A decrease of 17% due to ricing interest rates and market selloffs in the REIT market.

The current share price offering an estimated yield on cost of almost 6% is for me reason to add this big REIT to my portfolio.

Unibail-Rodamco is in the process of acquiring Westfield Corporation. The offer on Westfield is a combination of cash and Unibail-Rodamco shares. Due to the decrease in the Unibail-Rodamco share price there is a risk that Westfield shareholders will try to negotiate another deal.

With this purchase the estimated yearly dividend increased by €86,40.

Purchase of 45 shares Amsterdam Commodities Acomo

Today I bought 45 shares of Amsterdam Commodities at a price of €25,35. Amsterdam Commodities N.V. (Acomo) is an international group of companies with its principal business being the trade and distribution of agricultural products.

Acomo has a yearly dividend of €1,15 at the moment. With this purchase my yearly estimated dividend income increases with €51,75. The yield on cost is 4,54%.