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.
Today I purchased 21 shares Wereldhave at a price of €603,88 including fee’s. As a result of this purchase I now own 76 shares Wereldhave against. My average purchase price declined from €34,33 to €32,79.
With this purchase I add €52,92. to my yearly estimated dividend income. Yield on cost of my Wereldhave shares is 7,68%.
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%.
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.
This week I bought 32 shares of The Bank of Nova Scotia at a price of $53,48. As a result of this purchase my yearly estimated dividend income will increase with $81,35.
The Bank of Nova Scotia is paying a yearly dividend of C$3,40 / $2,54. As a result of this dividend the yearly yield is 4,75%.
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%.
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.
This week I purchased 25 shares of Altria Group (MO) at a price of $55,88. With this purchase I add $80 to my yearly estimated dividend income. Based on the price I paid today the yield of Altria is 5,72%.
Shares of Altria are around a 52 weeks low and I decided to start a position in this company.
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%.
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.