Purchase 10 shares AbbVie

Last week I bought 10 more shares of AbbVie at a price of $67,77. After AbbVie announced the purchase of Allergan, the stock price tanked as a result of the premium paid for the takeover.

I decided to add 10 more stocks AbbVie to my portfolio. As a result of this purchase I now own 45 shares AbbVie.

By making this purchase my average purchase price of AbbVie stocks declined from $82,84 to $79,50.

As a result of buying 10 more shares my yearly estimated dividend income will increase by $42,80. Based on the new average purchase price the new yield on cost for me is 5,38%.

Purchase 180 shares Annaly Capital Management

This week I purchased 180 shares Annaly Capital Managment at a price of $9,33. The current quarterly dividend of Annaly Capital is $0,25 per share so my yield on cost is 10,7%.

As a result of the purchase of 180 shares Annaly Capital my yearly estimated dividend income will increase by $180.

Annaly is relatively high risk addition to my portfolio. Annaly is a mortgage REIT and the current market with low interest rates is not favorable for mREIT companies.

Due to the marketconditions Annaly Capital reduced it’s quarterly dividend from $0,30 to $0,25. The current shareprice is basically around it’s 3 years low and I decided to start a small position in Annaly. I bought these shares knowing that the dividend can be cut again, but at the current price I’m willing to add Annally to my portfolio.

This is my 2nd purchase of a mortgage REIT this year. Earlier this year I started a position in AGNC Investment. These 2 mREIT’s are almost 3% of my total portfolio and as mREIT’s are relatively high risk, I don’t plan to increase my exposore to mREIT’s any further.

Purchase 80 shares Macerich

Today I purchased 80 shares Macerich at $41,11. Macerich is paying a quarterly dividend of $0,75 per share so as a result of this purchase my yearly estimated dividend income will increase with $240.

My yield on cost based on a total dividend of $3 per year is 7,3%.

I had Macericht on my watchlist for a long time with as trigger to buy it if shares would go over 7%. Macerich is a REIT owning high quality shopping malls. The is down around a thrid since the 52 weeks high reached in the summer of 2018.

Purchase 1 share Givaudan

Yesterday I purchased 1 share of Givaudan against a price of CHF 2.610. With this purchase I’m adding CHF 60 to my yearly dividend income. In euro’s this is a yearly dividend of around €52,80. Based on the purchase price my yield on cost will be 2,30%.

Givaudan is a Swiss manufacturer of flavors, fragrances, and active cosmetic ingredients which. Givaudan has a marketshare of approximately 25% in flavors and fragrances.

Due to the absolute high price of Givaudan shares I waited to buy this stock in April so besides my monthly deposit I could also use the dividend income from March and April to fund the purchase of this stock.

Purchase 26 shares Bayer

Today I purchased 26 shares Bayer against a price of €57,24 including costs. Bayer is down almost 50% to it’s 52 weeks high. Last month the stock price declined almost 20% after a U.S. jury found the Roundup weed killer to have been a substantial factor in a California man’s cancer.

I decided to start a position in Bayer to keep them for the long term and enjoy their divind of €2,80 per year. My yield on cost will be 4,89%. Bayer has many quality divisions, but the stock price is under big pressure due to legal issues regarding Roundup. Bayer acquired the Roundup brand as part of the merger with Monsanto.

My yearly estimated dividend income increased by €72,80 as a result of this purchase.

Purchase 50 Colony Capital Pref H & 50 Colony Capital Pref I

Today I a total of 100 preferred stocks from Colony Capital divided over 2 different series.

50 preferred shares from series H with a dividend of 7,125%. Series H are callable from 13 April 2o20. Based on a purchase price of $21,97 my yield on cost will be 8,1%.

I also bought 50 preferred shares from series I with a dividend of 7,15%. Series I are callable from 5 June 2022. Based on a purchase price of $22,55 my yield on cost will be 7,9%.

With the purchase of 50 shares of both series I add $178,40 to my yearly estimated dividend income.

Purchase 6 share Tableau

Yesterday I started a small position in software company Tableau (DATA). Tableau is offering software which is strong in data visualization. I’m using their applications myself and I’m extremely positive about the capabilities of Tableau.

As business controller I’m often working on turning data into information which supports making decissions. Tableau helps to turn data into visualized analysis which makes way more easier to understand the data than just sending some tables in Excel.

Tableau is already long on my watchlist, but I never spotted a serious dip to start a position. I’m now starting a minor position of 6 shares with a purchase price of $134,30 with the intention to increase this position in the future.

Tableau is not paying a dividend at the moment so my yearly estimated dividend income doesn’t change.

Purchase 5 shares salesforce.com

Today I purchased 5 shares of salesforce.com (CRM) at a price of $165.06. I have Salesforce on my watchlist for a really long time already and planned to buy it on a dip, but was never able to find a good moment to buy.

Because of the strong positions Salesforce has in CRM software I decided to start an initial position in Salesforce.com with the intention to increase this position further in the future.

Salesforce.com is not paying any dividend so my estimated dividend income will not change.

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.