Purchase 91 shares AGNC investment Corp

This week I bought 91 shares AGNC Investment Corp at a price of $17,60. AGNC is a mortgage REIT. AGNC is an internally-managed mortgage REIT which is predominantly investing in agency mortgage-backed securities.

AGNC Investment Corp is currently paying a monthly dividend of $0,18. On a yearly basis the yield is 12,3%. As a result of the 91 shares I purchased, my yearly estimated dividend income increased by $196,56.

Mortage REIT’s are a very specific investment category. Mortage REIT’s provide financing for real estate by purchasing or originating mortgages and mortgage-backed securities. mReit’s are basically earning their income by the difference between the interest they receive on the mortages or mortage-backed securities they own and the interest they pay on their loans.

Mortgage REITs often attract short term loans against a low interest rate to originate long term mortgages or buy long term mortgage-back securities. As a result mREIT’s are extremely sensitive to interest rate increases, because this will reduce the spread between the interest they receive and pay.

I own shares in REIT’s in various categories. Already for a long term I have AGNC investment corp on my watchlist to also have exposure to the mortgage REIT category.

I have to say that I consider it difficult to understand a company like AGNC. Normally when I read the annual report or other presentations of the company it’s rather easy to get an idea about what a company is doing from the brands they own, the products they produce or the list of properties they own.

In the annual report of AGNC is a list with the duration and interest rates of their assets, but I consider it difficult to see in this what the MOAT is of a mortgage REIT. AGNC is mainly investing in securities backed by single-family residential mortgages and collateralized mortgage obligations guaranteed by government agencies Fannie Mae, Freddie Mac, and Ginnie Mae. For this reason and their monthly payments I decided to add AGNC Investment Corp as mREIT to my portfolio.

I will enjoy their monthly payments, but I don’t expect any capital appreciation from this investment. Also I realize that rising interest rates will mean a dividend cut. To keep a balanced portfolio I will probably add another mREIT, but I doubt these will ever be among my biggest positions as mREIT’s are able to often bring high yields, but also volatile yields.

Purchase of 27 shares Macquarie Infrastructure Company (MIC)


Today I bought 27 shares Macquarie Infrastructure Company at a price of $41,18. As a result I now own in total 74 shares.

My average purchase price of MIC shares is declinging as a result of this purchase from $52,95 to $48,66.

Due to this purchase I add $108 to my yearly estimated dividend income. My yield on cost MIC is 8,22%. The current yield is 9,71%.

Purchase 3 shares Unibail Rodamco Westfield

Today I purchased 3 shares Unibail Rodamco Westfield at a price of €143,30 including transaction costs and French stock transaction tax.

As a result of this purchase I now own 15 shares Unibal-Rodamco-Westfield. The average purchase price is reducing from €171,03 to €165,49.

Due to the purchase of the 3 shares Unibal my yearly extimated dividend income will increase with €32,40.

Yield on cost is 6,52% based on my average purchase price.

Purchase 30 shares BMW

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Today I purchased 30 shares BMW at a price of €71,75. I already had BMW for some time on my watchlist and I decided to buy 30 shares today. This also because the stocks are trading around a 52 week low. Due to the effect of trade war tariffs and exchange rates BMW is expecting pressure on their profitability.

As a result of the selloff on the stock exchanges this week I consider it a good moment to pick up a few BMW shares for the long term.

As a result of this purchase I add €120 to my yearly estimated dividend income. The current dividend per share is €4 so the current yield is 5,57%.

Purchase of 8 shares Berkshire Hathaway B

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Today I purchased 8 shares of Berkshire Hathaway at $211,29 per share. I was reading about the stock investment of Berkshire Hathaway and noticed that many of the investments are done in bank stocks. In the last quarter positions in 6 banks were initiated or increased.

Due to the investment of Berkshire I decided to do research on the bank stocks Berkshire is owning. This so I can pick 1 or 2 banks to invest in. While doing research I decided to buy shares of Berkshire instead.

This purchase is adding nothing to my yearly estimated dividend income, because Berkshire is not paying a dividend. On the otherhand I like owning this stock based on their history.

Purchase of 2 shares Boeing at $308,80

Today I bought 2 shares Boeing at a price of $308,80. With this purchase I add $13,68 to my yearly estimated dividend income. After this purchase I own 6 shares Boeing. I bought my original 4 Boeing shares for $167,62. As a result of the purchase I made today my average purchase price of Boeing is increasing to $214,77.

The dividend yield of Boeing based on the price I paid today is 2,21%. Yield on cost based on my average purchas price is 3,18%.

Purchase 50 shares ING Group

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ING Group is my 3rd purchase of the month. I bought 50 shares of ING Group against a price of €11,61. I now own 100 shares ING with an average purchase price of €12,75. With this purchase I added €33,50 to my yearly estimated dividend income. My yield on cost of this position in my portfolio is now 5,25%.

ING Groups share price dropped lately due to a €775 million fine regarding having lax policies regarding money laundering and due to being the Dutch bank with the largest exposure to Turkey. ING Group is down 30% this year. The current dividend yield is 5,77% and I decided to add 50 shares against the current price.