AGNC Investment cuts dividend by 25%

AGNC Investment announced a dividend cut of 25%. The monthly dividend is reduced from $0,16 to $0,12. This is old new from begin April, but I only found out now while reading some older updates

As a result my yearly estimated dividend income will reduce by $50,40.

Current yield based on the new dividend is 11,7%. My yield on cost based on the reduced dividend of AGNC Investment is 8,7%.

Dividend Report March 2020

March was a month as I never experienced before in my life. Both from a personal as a financial perspective. The stock market took a nosedive and for a few weeks I’m working most of my time from home as is now adviced by the Dutch governement.

The dividend report over March is still very positive as dividends got still paid out normally, but some companies announced cuts or are stopping their dividend payments at the moment. This will definately have an impact on my dividend income this year and probably also on next few years as the Covid-19 situation will probably impact the economy the next few years.

My dividend income this month is up 41% compared to previous years. In total I received this month €592,16. On the otherhand my outlook for this year declined from €6.010 last month to €5.207 now due to cancellations and cuts of dividend and probably more dividends will be adjusted downwards probably this year.

Normally I also have some option premiums to list as profit but this month I took a loss of €608,05 while closing all put options I had out in the market. I normally tend to not touch the options, but the Covid-19 developments are too unpredictable for me and I decided to take the loss and close all option positions.

Dividend Income – €592,16

Macerich107,98
Unibail-Rodamco-Westfield81,00
Royal Dutch Shell78,41
Macquarie Infrastructure Company66,29
Enbridge54,54
Invesco35,69
Dominion Energy26,27
Unilever18,47
Carnival Corporation17,68
Qualcomm17,02
AGNC14,75
Bank of America14,67
Delta Air Lines12,98
Johnson & Johnson12,51
McDonalds12,30
Boeing10,93
EPR Properties10,66

Transactions:

  • 18 shares Simon Property Group
  • 31 shares EPR Properties

Purchase 18 shares Simon Property Group

In April I purchased 18 shares Simon Property Group against a price including costs of $60,30.

Stock price of Simon Property Group is this year well over 60% down as a result of SPG closing all of their USA based malls due to Covid-19.

Based on the purchase price of $60,30 the yield is 13,9%, but I consider it realistic that due to the lack of rental income SPG will decide to skip payments this year.

Nevertheless I add to my current position as I still believe strongly in the future prospects of the shopping centers owned by Simon Property Group. Although I can also imagine it will take some years to totally recover from the Covid-19.

Based on current dividend I increase my yearly estimated dividend income with $151,20, but as I said I won’t be surprised if the dividend will be cut or skipped the comming year.

Dividend Report February 2020.

Today I noticed I didn’t post my February dividend report. As March is already finished I will only make a very short post and only list the table with dividend income. Total income was €209,27.

Next month I will make a proper post again.

AbbVie49,00
Simon Property Group45,67
PacWest Bancorp27,75
WestRock Company23,44
AGNC Investment15,48
Royal Bank of Canada15,28
Caterpiller13,36
EPR Properties10,77
Apple8,52

Purchase 31 aandelen EPR Properties

Last week I purchased 31 stocks EPR Properties for $29,21 including costs. With this purchase I double my position in EPR Properties.

The stock is down over 70% versus it’s 52 weeks high as tennants of EPR Properties are almost totally closed due to Corona virus. These worries are totally justified as the tennants are having none or close to none income as long as their venues are closed.

EPR Properties announced an $150 million share buy-back as they consider the value of their stock to be way to low. At the moment there seems to be 2 opinions about EPR Properties at the moment: 1 group is considering EPR Properties basically dead as all their tennants are out of money. The second group is seeing short term problems for tennants, but that at some point business will be (close to) usuall and that the price is not reflecting this.

I also consider the price to low despite short term problems and purchased 31 shares. With this purchase my estimated dividend income will increase by $55,08 if the dividend is maintained.

This is a big “if” in the current market, but nevertheless I double my position in this company.