Purchase of 8 shares Berkshire Hathaway B

berkshire hathaway b logo

Today I purchased 8 shares of Berkshire Hathaway at $211,29 per share. I was reading about the stock investment of Berkshire Hathaway and noticed that many of the investments are done in bank stocks. In the last quarter positions in 6 banks were initiated or increased.

Due to the investment of Berkshire I decided to do research on the bank stocks Berkshire is owning. This so I can pick 1 or 2 banks to invest in. While doing research I decided to buy shares of Berkshire instead.

This purchase is adding nothing to my yearly estimated dividend income, because Berkshire is not paying a dividend. On the otherhand I like owning this stock based on their history.

Purchase of 2 shares Boeing at $308,80

Today I bought 2 shares Boeing at a price of $308,80. With this purchase I add $13,68 to my yearly estimated dividend income. After this purchase I own 6 shares Boeing. I bought my original 4 Boeing shares for $167,62. As a result of the purchase I made today my average purchase price of Boeing is increasing to $214,77.

The dividend yield of Boeing based on the price I paid today is 2,21%. Yield on cost based on my average purchas price is 3,18%.

October Dividend Report 2018

Monthly Report October:

In October I received €78,36 in dividend payments. Last year in October I received €25,79 so my dividend income is up 203%.

I only have 5 stocks in my portfolio paying dividend in October. So October is never a big dividend income month for me. Wereldhave, Coresite Realty and Coca Cola are over 80% of my dividend income this month.

This month the share prices were down a lot due to trade war fears. My China-Tech related exposure increased by purchasing Alibaba and Tencent. Also I bought 112 shares Royal Dutch Shell at the end of the month, because Royal Dutch is down over 10% since its top and I consider the dividend yield of 5,6% a decent level to buy.

It’s possible that I will slightly reduce my Royal Dutch Shell position if the shares are above €30. Last few years I purchased a few times Royal Dutch Shell around €25 to sell it above €30. Shell is one of the few companies in which I sometimes open a ‘trade’ position. While waiting for the price to increase I enjoy the dividend and above €30 I sell (part) of the shares.

The month I ended with a portfolio value of €59.781. So I’m down 4,6% this month. My estimated dividend income for 2018 based on my current portfolio is €2.202. The yearly estimated dividend income of my current portfolio is €2.655.

Dividend Income – €78,36:

– Wereldhave €34,65
– Coresite Realty €17,81
– Coca Cola €13,15
– EPR Properties €9,34
– Brown-Forman B €3,42

Transactions:

– Purchase 112 shares Royal Dutch Shell A
– Purchase 10 shares AliBaba Group Holding
– Purchase 30 shares Tencent

Dividend Changes:

none

2018 Target Status:

I’m at €16.950 out of €18.000 deposit target (94,2%)
I’m at €1.825,52 out of €2.200 dividend received target (83,0%)
I’m at €5.400 out of €5.000 extra mortgage repayments (target reached)

Purchase 112 shares Royal Dutch Shell

epa:rdsa royal dutch shell

Today I bought 112 shares Royal Dutch Shell A (EPA:RDSA) at a price of €26,93 per share including transaction fees. As a result of this transaction my average purchase price of Royal Dutch Shell is declining from €27,23 to €27,05.

With this purchase I add €184,80 to my yearly estimated dividend income. Yield on cost will be 6,1%.

There is one more dividend payment scheduled at 19 december so this purchase will also add €46,17 to my 2018 dividend income.

Purchase 10 shares Alibaba Group Holding

alibaba group holding logo BABA

Today I bought 10 shares Alibaba (BABA) at a price of $139,86 including fees. Alibaba is not a typical stock for me to buy as dividend growth investor. This is because Alibaba is not paying out any dividend at all. Together with Amazon, Alphabet, Facebook, Baidu and Wizzair it’s in the part of my portfolio with companies not paying dividend.

Alibaba is today down almost 6% and the share price is around the 52 weeks low. The share price of Alibaba is down 35% down from the 52 weeks high reached in June.

Alibaba is for some time on my watch list and I decided to pull the trigger today after a sharp downturn of tech shares. With this purchase I now own all 3 BAT stocks: Baidu, Alibaba, Tencent.

Purchase 30 stocks Tencent

Tencent Corporate Logo

Normally I tend to place my monthly stock purchase at the end of the month just after I received my salary. This month I’m early. I planned to buy this month Tencent (NNND)stocks and I placed a limit order almost 5% below the current price. Last days the price of Tencent dropped and I got 30 shares at a price of €34,86 at the Frankfurt exchange.

Tencent is not really a dividend stock, so not a regular stock pick for me. This buy is more a purchase against the current sentiment in the market which is negative for Tencent. Tencent is down 30% from it’s highest price this year. I have Tencent a long time on my watchlist, because it’s a company with a strong position in China. Tencent has a strong moat in China with the WeChat app. The Chinese market is still difficult to enter by foreign companies so it’s my opinion that Tencent won’t experience any competition from Facebook or Alphabet on their homemarket.

The advantage is possibly also a weakness. The Chinese government is softly said not a big fan of the gaming market and lately Beijing is restricting gaming approvals. Near-term there are regulatory challenges in China, but for longer term overall industry growth prospects within Asia are very solid.

With the purchase of Tencent stocks I gain more exposure to Technology and China exposure.

Tencent payed a dividend of HK$0.88 per share over 2017. This is approximately €0.10 per share. As a result of purchasing 30 Tencent shares my yearly expected dividend income will increase with €3,00. The yield on cost based on the current dividend is 0,29%.