Dividend Increase Q4, Dividend decrease outlook 2018 + purchase 21 shares Macquarie Infrastructure Company

Today Macquarie Infrastructure Company announced that the Q4 dividend will be increased from $1,42 to $1,44. Macquarie Infrastructure Company also announced the dividend outlook for 2018 will be decreased to $1,00 per quarter.

The explanation for the dividend cut:
“In addition, we have made the decision to reduce our 2018 dividend in favor of internally funding the repurposing of the assets at International-Matex Tank Terminals and to take advantage of the incentives to invest in growth projects that are a part of recent tax reform,” Frost added. “We believe that our guidance for a dividend of $1.00 per share, per quarter, in 2018 strikes a balance between continuing to return the majority of our Free Cash Flow to shareholders in the form of a dividend and strengthening our balance sheet in support of future dividend growth.”

Due to the dividend cut the share price of Macquarie Infrastructure Company is down almost 40%. I decided to double my position in Macquarie Infrastructure Company from 21 to 42 shares and bought 21 additional shares against a price of $39,51. Based on a quarterly dividend of $1,00 the shares have a yield on cost of 10,1%. For speculative reasons I increased my number of shares.

The dividend reduction from $1,44 to $1 per quarter is resulting in a decrease in estimated yearly dividend income of $36,96
The purchase of 21 shares is resulting in an incrase in estimated yearly dividend income of $84.

I do consider this purchase speculative. Although Macquarie Infrastructure Company is saying the want to use the cashflow to fund projects which should normally result in additional cashflow in the future, I’m not sure this is the only reason, becausee altough interest rates are rising, they are still low compared to historic rates.

I personally buy sometimes extra shares at the moment the price is going down a lot speculating on an overreaction in the market. Only the future will learn me if this was a good or wrong bet.

With this purchase my average purchase price decreased from $69,61 to $54,56. Estimated yield on cost will be 7,33%.

Dividend report January 2018

Starting this months I will report all my dividends in euro.

Brown-Forman €3,27
Coresite Realty €5,62
National Grid €17,41
Wereldhave €15,40
Wisdomtree Smallcap Dividend ETF €0,72

A total of €42,43

Targets:
I’m at €252 out of €5.000 extra mortgage repayment above the regular repayment (5,0%)
I’m at €1.500 out of €18.000 deposits in my stock account (8,3%)
I’m at €42,43 out of €2.200 dividend received (1,9%)

Purchase of 45 shares Amsterdam Commodities Acomo

Today I bought 45 shares of Amsterdam Commodities at a price of €25,35. Amsterdam Commodities N.V. (Acomo) is an international group of companies with its principal business being the trade and distribution of agricultural products.

Acomo has a yearly dividend of €1,15 at the moment. With this purchase my yearly estimated dividend income increases with €51,75. The yield on cost is 4,54%.

Purchase of 14 shares Macquarie Infrastructure Company

After the sales of 12 shares Verizon and some dividend income, I have same funds available to reinvest. The available funds I used for the purchase of 14 shares Macquarie Infrastructure Company at a price of $65,99.

I already owned 7 shares Macquarie Infrastructure Company so after this purchase I have 21 shares.

The weighted average purchase price decreased from $76,84 to $69,61. With this purchase I added an estimated yearly dividend income of $79,52 to my portfolio. The yield on cost based on a yearly dividend of $5,68 per share is 8,16%.

Sales of 12 shares Verizon Communications

Today I sold 12 shares of Verizon Communications and closed my position in this stock. Based on the Q4 results published today by Verizon.

For years now both the sale and EBIT of Verizon is growing at a very slow rate. Based on the today published figures I decided to sell all my Verizon shares.

Results

-€556,78 Purchase Price
+€20,73 Dividend Received
+€518,71 Sales Price

-€17,34 Total Result

I bought the shares at an USD price of $49,58 and sold them at an USD price of $53,15, but during the time the USD/EUR exchange rate changed during the time I owned Verizon from 1,0696 to 1,2284. This is an 13% decline.

It’s a good sample to show the impact exchange rates can have on a portfolio.

With the sales of 12 Verizon shares my estimated dividend income this year decreases with $28,32.

Dividend Increase Omega Healthcare

Today Omega Healthcare did announce a dividend increase from $0,65 per quarter to $0,66 per quarter. This is an increase of 1,5%. The yearly expected dividend per share is now $2,64.

I own 53 shares of Omega Healthcare so my yearly expected dividend increased with $2,12.

The expected yield on cost is now up from 9,61% to 9,76%.