Today I bought 50 shares National Grid at a price of 885,8 pence. I now own 100 shares National Grid. My average purchase price decreased from 1088 pence to 987 pence.
With this purchase I expect to add €24,88 in yearly dividends. The expected yield on cost of my National Grid position is expected to be 4,51%.
Today I bought 100 shares Kas Bank at a price of €9,956 per share.
Kas Bank is a small bank listed at Euronext Amsterdam. Kas Bank is a custody, clearing en settlement bank. Kas Bank is focussing entirely on wholesale securities services to professionals. At this moment Kas Bank has 450 billion euro under administration.
Kas Bank is a small bank and has a market capitalization of approximately 150 million.
Kas Bank is paying a yearly dividend of €0,64 per share. The yield is 6,4%. With the purchase of the 100 Kas Bank shares I add €64 in yearly dividends to my portfolio.
Today I bought 10 shares of Royal Bank of Canada against $76,23.
Royal Bank of Canada is paying a quarterly dividend of $0,724 per share. With this purchase I’m adding $28,96 to my yearly expected dividend payments. The expected yield will be 3,8%.
The average dividend growth rate of Royal Bank of Canada is 9,7% over the last 5 years. With a payout ratio of 46% I expect it’s possible to maintain dividend growth in the near future.
It’s hard to make an estimation on the interest rate trend, but I expect the interest rates to increase in the near future as a result of the changing monetary policy of the federal reserve. The federeal reserve announced the plan to stop buying bonds on the open market and start selling bonds they own. This could result in higher interest rates, because investors could buy the bonds sold by the FED. As a result less money is available to buy newly offered bonds and as a result the interest rate should increase.
As banks tends to make higher margins when the interest rate is higher I decided to increase my exposure in the financial sector by adding Royal Bank of Canada shares.
Today I bought 4 facebook shares at $162,71.
Although Facebook is not paying any dividends I wanted to add a few shares to my portfolio for some time. Today Facebook is almost 5% down from $170,54 to 162,71. For me reason to buy 4 shares. I tend to have problems seeing the value in stocks like facebook with a high PE ratio and no dividend yield, but based on the return on equity of above 20% and the profit growth figures I consider this a good buy for the long term.