Purchase 51 shares PacWest Bancorp

Today I purchased 51 shares PacWest Bancorp (PACW) at a price of $35,22. PacWest Bancrop is a regional bank holding company mainly active in California. PacWest has over $26 billion in assets and is the holding company for Pacific Western Bank.

PacWest Bancorp is currently paying a dividend of $2,40 per year which results in a dividend yield of 6,8%.

As part of my targets for 2020 I also formulated 6 guidelines which I use regarding new investments. New investments must follow at least 4 out of these 6 targets:

Yield > 2,5%Y6,81%
5YR average dividend growth > 10%N4,66%
Payout < 65%Y61,50%
PE ratio < 20Y9,0
ROE > 10%N9,60%
Current price vs. 52 week high < 85%J84,60%

The dividend growth I basically one of the most import lines on the list with guidelines above, but as the current yield is high this stock still scores high on my watchlist.

The estimated dividend income from PacWest Bancorp the next 10 years is beating the expected income from other stocks on my watchlist with a higher average dividend growth rate. Only PNC Financial is getting close in this time frame, but as I use an average 5 year growth rate of 20% for PNC so it’s questionable if this growth rate can be maintained over a time frame of 10 years.

With the purchase of PacWest Bancorp I add $122,40 to my yearly estimated dividend income.

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.