Balancing Legal & General PLC and Purchase Averaging Down Taubman Centers

Today I sold 280 out of the 650 shares Legal & General I owned. This is balance this position in my portfolio as the weight of this position got relatively big due to recent price increases.

I purchased my 650 shares Legal & General Plc at the end of August for a price of GBX 219,60. I now sold part of my position for GBX 318,50. This is an increase of 45%. GBP/EUR exchange rate resulted in another 9% profit.

When I started this position the yield of Legal & General Plc was 7,57%. Against the current stock price the yield is 5,83%. For me a reason to balance this position back to it’s original value.

By selling 280 shares my yearly estimated dividend income decreases by GBP 46,90 / €56,10.

With the proceeds from the sold Legal & General Plc shares I doubled my position in Taubman Centers by purchasing 35 shares at a price of $29,98.

Where I was very lucky in the timing of my Legal & General purchase, my timing of buying Taubman Centers was simply unlucky. End July I purchased 35 shares with an average purchase price of $40,78. Today i doubled my position against a 26,5% lower price.

As a result of doubling down the average purchase price of my position in Taubman of 70 shares declined from $40,78 to $35,38.

By adding 35 shares Taubman my yearly estimated dividend income based on the current dividend will increase by $94,50 / €84,82.

Enbridge Increases Dividend By 9,8%

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Enbridge announced an increase of the quarterly dividend from C$0,738 to C$0,81. This is an increase of 9,8%.

I own 100 shares Enbridge so the dividend release will increases my yearly estimated dividend income by C$28,80.

The current yield of Enbridg is a nice 6,39%. As a result of the announced dividend increase my yield on cost is now 9,35%.

LVMH Interim Dividend 2019 up 10%

LVMH recently paid their interim dividend and I noticed the interim dividend was increased by 10% to €2,20 per share.

I own 4 shares LVMH so the increase of the interim dividend results for me in €0,80 extra dividend.

Based on the last 2 dividenpayments of LVMH the yearly dividend is now €6,20 which results in a current yield of 1,56%. This is basically around 50% of the earings per share so enough cashflow is staying within the company to afford the bid on Tiffany’s.

Based on my average purchase price my yield on cost is 2,96%.

I’m a big fan of this company although I don’t own any of the items produced by LVMH. Although we often celebrate the new year with a bottle of Veuve Clicquot champagne.

Purchase 36 shares Delta Airlines

Last week I purchased 36 shares Delta Airlines at a price of $56,42. I finished this transaction by selling 26 shares of the ETF VanEck AEX. VanEck AEX is an ETF investing in the AEX index which is composed of Dutch companies.

I already have positions in ASML Holding, Unilever, Shell, ING, DSM, Ahold, Unibail-Rodamco-Westfield and Aegon and these companies are over 60% of the AEX index. I decided to sell my last ETF and use the proceeds to initiate a position in Delta Airlines.

By closing my position in VanEck AEX my yearly dividend income will decrease by €52,78. This will be offset my $58,03/€52,75 dividend income from Delta Airlines.

Delta Airlines is currently paying a quarterly dividend of $0,403. Based on my purchase price the yield on cost is 2,86%.

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.