November 2019 Dividend Report

November is already finished for some time. It was a super busy month where I did spend long days at the office working on several contracts regarding the automation of our eCommerce warehouse.

The dividend income in November tallied to €300,18. This is an increase of 93% versus November 2018. A total of 11 companies paid me dividend in November. Macquarie Infrastructure Company, Wereldhave and AbbVie are responsible for well over 50% of my dividend income last month.

The external management of Macquarie Infrastructure Company announced the intention to pursue strategic alternatives, with which they mean they try to sell the company. I hope they don’t sell the company, because I prefer receiving the 9% dividend over some short term capital gain.

The November month was also an active month for resulting in 9 trades. While preparing my targets for next year I was considering adding a target to reduce my overexposure to REIT’s, but I decided to close 3 REIT positions already in this year instead of delaying it to next year. With the proceeds I started positions Albemarle, Carnival Corporation PLC and Dutch smallcap Royal BAM Group. Occidental Petroleum is my regular monthly purchase with freshly deposited money.

This month was also a record month for me in profits realized from option positions which expired or which I closed in November. The November option expiration resulted in €1.773,50 in realized option profits.

Dividend Income – € 300,18

Macquarie Infrastructure Company66,96
Wereldhave63,00
AbbVie43,57
Simon Property Group30,50
HSBC18,18
ASML Holding15,75
AGNC Investment15,26
Royal Bank of Canada15,04
Caterpiller13,03
EPR Properties10,52
Apple8,36

Transactions:

Dividend Changes:

  • Brown-Forman +5%

2019 Target Status:

  • I’m at €13.200 out of €14.400 deposit target (91,7%)
  • I’m at €4.361,86 out of €3.500 dividend received target (124,6%)
  • I’m at €2.656,10 income from writing options
  • I’m at €2.940 in extra mortgage repayments

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.

Sold 500 shares WPG: I can sleep again

In August I purchased 500 shares Washington Prime Group (WPG) as based on my models I considerred this REIT a distressed security with a too low price. I paid $3,51 per share. Based on the yearly dividend of $1 the yield on cost was 28,5%.

Based on the calculations I made I considerred it a possibility that the dividend would be cut partially, but that it would nevertheless still be a a high dividend.

After owning the stock for almost 4 months I notice that I still consider the calculations I made realistic, but nevertheless I’m closing this position. Although this position is around 1.5% of my portfolio, it’s often keeping my mind busy. Every article on SeekingAlpha with a critical approach on this stock is staying to long in my mind.

For this reason I sold the stock today against a price of $3,83. In the 3,5 months I had these stocks I made a profit of 24%. This is 10% as a result of stock price increases and 14% due to 2 dividend payments. This is a profit of €382,62 on an investment of €1.567,68.

As a result of this sale my yearly estimated dividend income will decrease by $500. A big hit on my expected income, but it seems like I put to much focus on a speculative position. With the proceeds I started a position in Delta Airlines.

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.

Sold 11 shares Warehouses de Pauw

Recently I sold the 11 shares I own in Warehouses de Pauw (WDP). Warehouses de Pauw is a Belgium REIT which is investing in warehouses.

I sold the shares against a price of €163,20. WDP is owning a strong portfolio of warehouses and is having a good solvability, but I consider the stocks at the moment this much overpriced that I closed my position. The last net asset value which was published in june is €76,70 so also the big difference between the share price and the NAV is giving me an extra reason to sell.

As the current announced dividend is €5,20 (3,18% yield), my yearly estimated dividend income will decline by €57,20.

I’m adding WDP to my watchlist as I still believe this is a very high quality REIT, but I will only get back into this stock when the yield will be around 4,5%.

With the current announced dividend of €5,20 the stock will have to be priced around €115 to be considered a buy again by me. This is a decline of 30%

I purchased the stocks against an average price of €94,63 and sold them against a price of €163,20 so the investment in Warehouses de Pauw was a very profitable one. I made a profit of €861,61 including €109,98 in dividends received on an investment of €1.040,89.

So I’m selling one of the winners in my portfolio, but I feel like the valuation of this REIT is way to high at the moment.

With the proceeds from this sale I purchased Albemarle stocks. I will write make a post about this purchase later this week.

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.

Sold 105 shares Monmouth Real Estate

Yesterday I sold all my 105 shares of Monmouth Real Estate. Monmouth is a nice stable company investing in warehouses, but they are also owning a portfolio of other REITs.

I’m selling this stock for a few reasons:

  • I’m reducing the share of Real Estate stocks in my portfolio
  • I don’t like that Monmouth is not only investing in warehouses, but is also having a big exposure to the stock market due to their 150 million stock portolio
  • Monmouth didn’t increase their dividend since November 2017
  • Monmouth keeps issuing new shares to add equity to purchase new buildings

I will keep Monmouth on my watchlist, because I recognize that they own quality properties which offer a stable cashflow. The current yearly dividend is $0,68 which results in a current yield of 4,39%. If the yield is getting in the range 5,5% – 6,0% I will consider getting back into this stock.

After closing this position I made an 8% profit or €114,32. Slightly more than 4% per year.

Tomorrow I will write about the new position I started with the proceeds from selling Monmouth.

5% Dividend Increase Brown-Forman

Last week Brown-Forman announced an increase of the quarterly dividend from $0,166 to $0,1743. This is an increase of 5,0%.

As a result of this dividend increase my yearly estimated dividend income will increase by $0,75.

My yield on cost based on the new dividend is 1,90%. The current yield of Brown-Forman is 0,99%.

Since starting my position in Brown-Forman in 2017 I received €52,21 in dividends.

It’s cool to receive growing dividend from this whisky producer (Jack Daniels) while I totally don’t like drinking whisky, but I like investing in this company owning strong spirit brands.

Option Expiration: November 2019

In november I basically closed my positions expiring in November early. As a result increasing stock prices in November I decided to buyback my November positions to realize the profit.

I also already closed a few positions expiring in December also to realize the profit. As a result of closing 6 positions I realized a total profit of €1.773,50. My total realized profit from writing options this year is now €2.656,10.

The 6 closed positions in November:

  • Closed 4x AGN P4.00 20DEC19 – €101,20 profit

    I opened this position in may for €35 per contract and now closed this position for €8 per contract.
  • Closed 10x AGN P3.90 15NOV19 – €123,00 profit

    This position was opened previous month against €17 per contract. I closed this position at €3 per contract.
  • Closed 2x ING P9.80 15NOV19 – €52,40 profit

    In October I rolled this position to November as it was in the money. On average I received €36 per contract and I closed this position against €4 per contract.
  • Closed 4x ING P9.00 19JUN20 – €433,20 profit

    I decided to close this position and not wait 8 more months for a few more percent of profit. I opened this position in December 2018 against €143 per contract and this month I closed the entire position against €33 per contract.
  • Closed 7x ING P11.00 20DEC19 – €618,10 profit

    This position I had for a long time marked as tricky, because it was deep in the money, because the shareprice of ING dropped from around €12 to €8 in August.

    Now the stock price of ING surged to well around €10,50, I decided to close this position.

    In September 2018 I started this position against €140 per contract and this month I closed the entire position against €50 per contract. I’m happy to take this profit and clos the position.
  • Closed 2x RD P25.00 20DEC19 – €445,60 profit

    This position I opened last year in November against an average price of €242,50 per contract. I closed this position this month against €18 per contract.

    I decided to buy back this december position as Shell had an ex-dividend planned on 14 november also and I don’t want this position in December to get into reroll zone.

I had a busy month this week in monitoring my option positions and closed many positions resulting in a record amount of realized profit which are all already invested into quality dividend stocks.

Purchase 48 shares Occidental Petroleum

For my purchase of this month I got inspiration from the dividend Bert’s October Dividend Income Summary. Normally I share many stocks on the dividend received list of other dividend bloggers, but in October there was not a single one company I shared with Bert.

This inspired me to take the companies from his list do some research about those companies and in the end I added Legett & Platt, Occidental Petroleum and Illinois Tool Works to my watchlist.

When selecting my potential buy for November, Occidental Petroleum was immediatelly scoring very high in my ranking model and I decided to place an order.

Occidental Petroleum is mainly scoring high in my ranking model based on their cashflow, yield and from being around their 52 weeks low.

On the otherhand I also deduct some ranking points in my model as Occidental is also having some higher than average risks such as possible short term issues related to integrating Anadarko, possible stock dillution due to the warrants given out to Berkshire Hathaway as part of a financing deal and maybe even a dividend reduction to fund debt reduction. Although the cashflow should be sufficient to continue the current dividend.

Occidental Petroleum is YTD down almost 40% and I consider this a good moment to start a position in Occidental Petroleum and I purchased 48 shares at $38,32.

With this purchase I add $151,68 to my yearly estimated dividend income. My yield on cost based on the current dividend of Occidental Petroleum is 8,25%.