Mid-year review 2019

Recap:

  • Deposited €7.500 versus a half year target of €7.200. On track!
  • Received €2.517 in dividends versus a half year target of €1.817. On track!
  • Extra repayment of mortage €2.600 above regular monthly terms.
  • Realized profit due to writing options of €433,45
  • Estimated dividend income 2019 at €4.300

Deposits:

My target monthly deposit I set at €1.200 this year. I didn’t really deviate from this plan so with with €7.500 transferred to my stock account I’m €300 above the mid-year target.

Dividend Income:

I received almost 40% more dividend than I expected. At the end of 2018 I calculated my expected dividend income based on my stock holdings at the end of the year.

At the end of 2018 / begin 2019 I did initiate a few short put positions and I used the received option premiums to invest in shares. As a result I have more money invested in stocks than I expected when calculating my expected dividend income.

As a result of the option premium invested in stocks my estimated dividend income this year is now €4.300 instead of the original target of €3.500.

Extra mortgage repayment:

In May I repayed €2.600 extra on my mortage. This is repayment above the regular monthly terms I pay.

I like seeing my mortgage debt going down faster than planned, but I don’t realize a big interest saving by this extra repayment.

Until 2026 the fixed interest rate on my mortgage is 1,99% so as a result of the extra repayment I save a whopping €51,74 in interest per year. As it’s in The Netherlands possible to deduct paid mortgage interest from the tax to be paid I’m actually only saving€25,87.

Nevertheless I like it to make the balance of this debt go down. Although interest rates are low now there’s always a risk that the next time the fixed interest is expiring that it’s at a time where rates are higher.

Option Income:

In the first 6 months of this year I realized profit of €433,45. I did write a decent amount of options end 2018 / begin 2019 with different expiration dates.

This is increasing the risk and volatility of the value of my portfolio, but it also gives the opportunity of extra income.

Fact Five:

  • Largest Position: Royal Dutch Shell (€5.408)
  • Biggest dividend payer: Royal Dutch Shell (€311)
  • Estimated dividend income 2019: €4.322
  • Biggest sector in my portfolio: REIT (18,3%)
  • 59 different companies in the portfolio

Targets 2nd half year:

  • 2 months only depositing and not buying shares, because I used a small credit to make some opportunistic purchases at market dips.
  • Focus on buying European stocks, because USA stocks are expensive at current valuation and USD/EUR exchange rate
  • Analyze my portfolio to check if the current sector allocation is balanced
  • Thoroughly keep track of the risk related to the short put positions and adjusting whenever necessary.

Final Thoughts:

I’m confident that I will reach the increased target of €4.300 in dividend income. I’m curious how the market will develop in the 2nd halve year. It now feels like the market is at a high valuation, but with trade war and interest developments can result in volatility.

In July many companies will publish their half year results. Based on the publication of half year results it’s also possible that stock will react strongly. At the current valuation lot’s of good news already seems to be included in the price.

Also it’s possible that the half year numbers will be good, but that prices will go down substantial if a company is publishing a conservative outlook. I already saw this happening with various companies publishing good results, but combined with a sober outlook.

It’s always interesting to see how stock markets are reacting on news, but as investor who holds stocks for the long term it’s normally not something what is bothering me.

20% Dividend Increase Bank of America

bac

Recently Bank of America announced that the quarterly dividend will be increased by 20%, beginning the 3rd quarter of 2019. BAC also announced a $30.9B share buyback program. This is around 11% of the outstanding shares based on todays shareprice.

As a result of the 90 shares I have my yearly estimated dividend income will increase with $9,73.

Based on the new dividend my yield on cost will be 2,78%.

June 2019 Dividend Report

After having a few record breaking months June is a relatively calm month again. I received €425,87 in dividends. This is an YoY increase of 91,5%!

This month I received payments from 13 companies. The 3 biggest payers in June are for me Royal Dutch Shell, Macerich and Enbridge.

I also realized €202,75 in option premiums income. I got lucky this month in timing a coverred put on Colruyt. I shorted 100 shares Colruyt and also sold a put at a strike of €64. A few weeks later Colruyt dropped over 20% as a result of the sober outlook the publiced regarding the next bookyear.

As a result of the 20% price drop I got 100 shares delivered from the short put so I took the maximum profit for this construction in a few weeks time. Of course I could have have made more money without writing the put, but I was expecting the stock staying in a tight price range as it did last few months.

This was for me the first time I experimented with a short stock position. I can’t say that I did feel comfortable with it. It was a position which was often making me worry, because I don’t have the feeling that as private investor I can easily make money with short positions.

The cost for borrowing the stock I didn’t know upfront and is variable based on how asked a certain stock is among short sellers. It also did make me feel that the market ‘works against me’. Last month the stock market in general was up. It gave me the feeling that I could easily lose a lot of money if the stock would increase with a few percent.

I totally don’t have any worries about the stocks I own or the few naked short put positions I have, because I can estimate the risk of the naked puts, but the risk of rising stock prices or a takeover of a stock which is shorted not gives me a comfortable feeling.

So for now I decided that I won’t short any stock soon. Any position in my portfolio shouldn’t give me the feeling that it could potentially have a to big impact on my portfolio value if the bet is wrong.

Dividend Income – € 425,87:

Royal Dutch Shell77,68
Macerich53,33
Enbridge48,97
Aegon40,50
DSM35,19
Think AEX UCITS ETF27,56
Dominion Energy24,36
Unilever18,47
Qualcomm16,33
AGNC Investment14,99
Johnson & Johnson12,71
Bank of America11,85
McDonalds11,36
Monmouth REIT11,35
Boeing10,87
EPR Properties10,35

Option Income – €202,75:

  • 2x AGN P4.30 21JUN19 – €24,60
  • 1x COL P64.00 21JUN19 – €178,15

Transactions:

Dividend Changes:

2019 Target Status:

  • I’m at €7.500 out of €14.400 deposit target (52,1%)
  • I’m at €2.517,28 out of €3.500 dividend received target (71,9%)
  • I’m at €433,45 income from writing options
  • I’m at €2.600 in extra mortgage repayments

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%.

I Want Dividend: Summer Special!

Today it’s a nice 28 degrees Celcius in The Netherlands. While waiting at a traffic light I was thinking about my stock portfolio. With nice sunny weather outside I was thinking what ‘summer stocks’ I have in my portfolio.

With summer stocks I mean stocks which offers a product or service which is enjoyed by people on warm summer days. This inspired me to write a Summer Special post and share with you the companies in my portfolio which let me profit from the holidays of other people.

1: Aegon (yield 7,32%)

Aegon is a dutch based insurance company. Aegon’s mainly generates income by selling life insurance.

As us Dutch people often have travel insurance to cover theft or hospital costs occuring abroad it’s makes for me that Aegon deserves a place in the Summer Special.

I have a travel insurance myself, but I’m guilty of having it at a company in which I don’t have any shares.

2: Tencent (yield 0,31%)

I wasn’t sure if I should list Tencent in this list. This was to be honest more, because as person I’m not well informed about their products. I still listed Tencent in this list, because I didn’t have any doubts about listing Alphabet or Facebook in this list.

Tencent deserves a mention as summer stock on this list, because Chinese people can post their fantastic pictures they make while being in The Netherlands on the social media platforms QQ and WeChat.

Also I assume that if Chinese people are doing research about beautiful locations in The Netherlands that they will also get stalked by targetted adds promoting holiday trips to The Netherlands.

I could also say that Tencent is a summer stock from the games they own. I guess many people are spending extra time on games during the summer holiday (partially) owned by Tencent like Fortnite, PUBG and Clash of Clans.

As far as I know I’m not a user of any of the services offered by Tencent, but I love telling to the son of my girlfriend who loves playing Fortnite that I’m one of the owners of Fortnite 😉

3: l’Oreal (yield 1,60%)

I gave l’Oreal a place on this list, because of the sun care articles they sell. When going on a holiday to a sunny location it’s a good idea to protect your skin by using high SPF sunscreen to protect the skin from the sun.

I’m a customer of l’Oreal myself and when I go on holiday there is for sure some l’Oreal sunscreen in my bag.

4: Altria (yield 6,52%)

Altria is one of the largest producers of cigarettes. Personally I don’t care about their products. Maybe their products even annoy myself, because I don’t like smelling smoke when sitting on a terrace enjoying a cool drink.

When I’m on the airport I see many people taking advantage of the tax-free shops and buying a few boxes of cigarettes. So I guess for many people visiting the tax-free cigarettes shop at the airport is part of their holiday routine.

5: Amazon.com (yield 0,00%)

Amazon sells almost everything: travel guides, suitcases, inflatable swimming pools, summer cloths, sun glasses and way way more.

For being a great site to visit to buy all kind of summer articles Amazon deserves a place on this list.

6: Danone (yield 2,72%)

Come on Erik! Danone is just a boring dairy company. Yoghurts is not really a holiday food!

Well, France is the most popular holiday location for Dutch people. I also love going to France. I really love the Provence area. It’s almost always sunny in the south of France and when it’s sunny I want to have some cool water to drink: Evian.

Evian is one of the many water brands owned by Danone and it qualifies Danone as summer stock.

7: Coca Cola (yield 3,26%)

I love cold cola on a hot day. Let me walk some time in the hot sun and Coca Cola is really refreshing me.

To stay more healthy: Coca Cola is also owning dozens of water brands all over the world. In The Netherlands and Belgium Coca Cola is owning the Chaudfontaine water brand. I enjoy drinking their carbonated waters on hot summer days at home.

Coca Cola is owning this many water brands that probably when being on holiday abroad I often drinked one of their waters without realizing it.

8: BMW (yield 5,64%)

Listing BMW as summer stock is maybe a bit far fetched. Why I list it? I drive a BMW myself. So when we go on a holiday by car we spend many hours in the BMW.

So personally I can list BMW as a summer stock.

9: Boeing (yield 2,41%)

Listing Boeing as summer company is way more clear. To get to holiday location many people go by plane and many people will travel in a Boeing produced plane to get to their destiny of choice and experience a wonderful holiday.

10: Alphabet (yield 0,00%)

I hate them during holiday time. Some weeks ago I used google to get information about a trip to Bali, Indonesia. For weeks I now get stalked by advertisements promoting Bali on sites I visit.

When I watch a video on youtube I still often get a video from a travel agency promoting a wonderful trip to Bali.

We didn’t book a trip to Indonesia, but Google is showing me so often Bali adds that I almost start to regret not booking the Indonesia trip. Almost!

11: Aena (yield 4,20%)

This company is not known by many people, but for me there is no doubt that this company deserves a place in this summer special.

Aena is operating 46 Spanish airports and 16 airports outside Spain. As tourist myself I travelled through a few Aena operated airports.

The airports in Valencia, Barcelona, Ibizi and Gran Canaria I visited as tourist.

As investor I love this unkown stock also. Operating an airport is very steady predictable business and they pay a nice juicy yield which will pay for a decent number of Cervezas (beers) during holiday.

12: Unilever (yield 3,04%)

Unilever is the worlds biggest icecream producer. Thats what I call a real summer company.

This icecream called ‘Raketje’ (rocket) in The Netherlands is something I loved to eat as kid and I still sometimes like to eat it.

13: Facebook (yield 0,00%)

Yes, this is a summer stock. Don’t you also see to many friends sharing way to many holiday pictures?

As I love the cashflow Facebook generates more than their product. I will not write more about them.

14: Royal Dutch Shell (yield 6,04%)

Far fetched again to list this company as summer company, but I don’t want to end with 13 stocks on this list. It’s holiday soon! I don’t want to bring bad luck to myself from listing only 13 companies on this list.

Now back to Shell. Why is it a summer company? It’s because when I go on holiday by car to for example the south of France I need gasoline. I will fill the tank of my car at Shell.

Also the planes flying to holiday location will use kerosine produced by Shell. I know, these are weak reasons to call Shell a summer stock, but at least I avoid to have a list 13 companies.

Do you have any stocks in your portfolio which are really making a profit from people enjoying the summer or going on holiday? Let me know in the comments!

Think AEX ETF increases Q2 dividend to €1,06

Think AEX ETF announced the Q2 dividend will be increased by 12,8% to €1,06. As a result of this dividend increase my yearly estimated dividend income will increase with €3,12.

Due to this dividend increase the yield on cost of will now be 3,86%.

Think AEX ETF is an ETF investing in the 25 stocks part of the AEX-index. The AEX index, derived from Amsterdam Exchange index, is a stock market index composed of Dutch companies that trade on Euronext Amsterdam.

Top 10 stock positions June 2019

I decided to periodically check the developments in my stock portfolio by taking a look at my 10 largest positions in my stock portfolio.

The Top 10:

#changeNameSectorValue (€)
1(-)Royal Dutch ShellEnergy5.304
2(-)EnbridgeEnergy3.132
3(-)Macquarie InfrastructureIndustrials2.677
4(-)ASML HoldingTechnology2.607
5(-)MacerichReal Estate2.500
6(-)FacebookTechnology2.446
7(-)UnileverConsumer Defensive2.436
8(-)GivaudanBasic Materials2.432
9(-)DSMBasic Materials2.395
10(-)AbbvieHealthcare2.391

Comments:

As this is the first time I publish the top 10 positions in my portfolio, I don’t have any interesting changes to report. Hopefully the next time I publish this top 10, the movents will give some insight in what happened in the period between this top 10 and the next top 10.

Before making this top 10, I didn’t know that Facebook is this big in my portfolio. I did build up my position by making 3 purchases. I started a small position a few years ago and bought more stocks on dips in the market. It one point Facebook was one of my biggest losing positions, but i’m now back in green figures again.

It’s funny that Facebook is this big in my portfolio. Personally I don’t like using Facebook at all. I don’t like the information I get from Facebook. I don’t trust information from Facebook. I don’t like all the disinformation I get on my timeline and I don’t like to see all the nonsense shared by Facebook friends. I get happy from finding long reads on SeekingAlpha, Yahoo Finance and The Motley Fool. Facebook, I don’t like, I don’t like, I don’t like…

I can also notice from my Top 10 that I’m probably over invested in Dutch companies. Royal Dutch Shell, ASML Holding, Unilever and DSM are Dutch companies from my top 10. On the otherhand it are also basically companies which are active all over the world. So it’s nice like i’m too much exposed to Dutch economy by having 4 Dutch companies in my top 10.

Next month I will publish a updated top 10 and see if there is something interesting to report from movements in my top 10.

First takeover: Tableau

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For the first time every I experienced having a stock in my portfolio which gets taken over by another company: Tableau.

Salesforce is offering 1.103 shares Salesforce for every share Tableau as part of an all-stock deal. Based on the closing price of both stocks on friday the bid represents a 42% premium.

I started a small position in both Tableau and Salesforce in March with the intention to increase the position on dips in the stockprice. Both companies where on my watchlist for a long time. I never catched a good dip in the stock price to start a position.

As I consider Both Salesforce.com and Tableau quality companies with unique products I splitted my monthly purchase in March over these 2 companies. I iniated a small sized position with the intention to increase the position on dips.

I plan to keep my stocks Tableau until they get converted in Salesforce. So my minor position in Salesforce will grow to an average size position in my portfolio.

Both Tableau and Salesforce.com are not paying any dividends so this takeover is not having any influence on my dividend income outlook.

End March I bought 6 shares Tableau at $134,20. At the time of writing this post the share price of Tableau is $168,64. This is a plus 25,7% in less than 3 months. As this is an all-stock bid the value of the bid will change based on the stock price development of Salesforce.

Sell 30 shares Wizz Air Holdings

This week I closed my position in Wizz Air Holdings and sold the 30 shares I own.

I purchased my shares Wizz Air Holdings in January 2017 at a price of 1.824 pence and I sold them this week at a price of 3.209 pence.

This is a return of 75,9% in 2 years and 4 months.

I sold the shares Wizz Air Holdings to reduce my exposure to the very cyclical Airlines sector. Wizz Air as ultra low cost carrier is operating a beautiful business model with really low prices, but based on the above average growth last years I decided to sell this stock.

Wizz Air Holdings is not paying any dividend so my yearly estimated dividend income is not influenced by this transaction. I will keep Wizz Air on my watchlist with a trigger to posibly pick up the shares again if the shares are below 2.500 pence.

May 2019 Dividend Report

In May I broke for the 3rd month in a row my dividend income record. I received €736,15 in dividends. This is an YoY increase of 111%! My record breaking streak will be over now for this year. Based on my portfolio and the timing of dividend payments, I estimate I will have to wait till April 2020 to set a new record.

This month I received payments from 18 companies. The 3 biggest payers in May are for me BMW, ING and Bayer. To be honest this is a funny top 3 for me. Normally BMW is a big cost for me, as I drive a BMW. I also pay monthly a substantial amount to ING, because I have a mortgage from ING. And Bayer well… the girlfriend is using some pills produced by Bayer.

Funny to have a 3 companies in the top 3 dividend payers this month which normally are responsible for a substantial part of my costs.

The son of my girlfriend is the most impressed by my lowest dividend paying company this month: Tencent. He told his friends that moms boyfriend is making money from Fortnite 🙂

Besides depositing €1.300 in my brokers account, I also did make an extra repayment on my mortgage of €1.500 reducing my mortgage debt and resulting in lower future interest payments.

I didn’t have any option income this month as I didn’t write any put options last month. Based on the high volatility I didn’t consider the option premiums worth it.

Dividend Income – € 736,15:

BMW105,00
ING88,00
Bayer72,80
Macquarie Infrastructure Company66,27
WDP52,80
Flow Traders50,00
Wereldhave47,88
Danone44,62
Omega Healthcare34,27
AbbVie33,53
ASML Holding31,50
Simon Property Group29,29
Amsterdam Commodities27,00
AGNC Investment16,88
Royal Bank of Canada14,23
EPR Properties10,38
Apple8,27
Tencent3,43

Transactions:

Dividend Changes:

2019 Target Status:

  • I’m at €6.300 out of €14.400 deposit target (43,8%)
  • I’m at €2.091,41 out of €3.500 dividend received target (59,8%)
  • I’m at €230,70 income from writing options
  • I’m at €1.500 in extra mortgage repayments