Today I bought 10 shares of Royal Bank of Canada against $76,23.
Royal Bank of Canada is paying a quarterly dividend of $0,724 per share. With this purchase I’m adding $28,96 to my yearly expected dividend payments. The expected yield will be 3,8%.
The average dividend growth rate of Royal Bank of Canada is 9,7% over the last 5 years. With a payout ratio of 46% I expect it’s possible to maintain dividend growth in the near future.
It’s hard to make an estimation on the interest rate trend, but I expect the interest rates to increase in the near future as a result of the changing monetary policy of the federal reserve. The federeal reserve announced the plan to stop buying bonds on the open market and start selling bonds they own. This could result in higher interest rates, because investors could buy the bonds sold by the FED. As a result less money is available to buy newly offered bonds and as a result the interest rate should increase.
As banks tends to make higher margins when the interest rate is higher I decided to increase my exposure in the financial sector by adding Royal Bank of Canada shares.
Today I bought 4 facebook shares at $162,71.
Although Facebook is not paying any dividends I wanted to add a few shares to my portfolio for some time. Today Facebook is almost 5% down from $170,54 to 162,71. For me reason to buy 4 shares. I tend to have problems seeing the value in stocks like facebook with a high PE ratio and no dividend yield, but based on the return on equity of above 20% and the profit growth figures I consider this a good buy for the long term.
In August I received the following dividends:
USD dividends ~ $48,05 total / €40,36
Macquarie Infrastructure $9,66
Wisdomtree Smallcap Dividend Fund ETF €1,35
Novo Nordisk $14,21
EUR Dividends ~ €20,25 total:
ING Group €12,00
GBP dividends ~ GBP 14,55 total / €15,92
National Grid 14,55
A total of €76,53
In July I received the following dividends:
USD dividends ~ $14,58 total / €12,31
iShares MSCI Emerging Markets UCITS ETF (Dist) $2,33
Coresite Realty $6,30
Wisdomtree Smallcap Dividend Fund $2,30
AUD dividends ~ $28,00 / €18,74
Macquarie Group – $28,00
EUR Dividends ~ €32,60 total:
Iberdrola €14,40 (+2 shares stock dividend)
A total of €63,65
Today I bought 15 Think AEX UCITS ETF’s. I now hold 26 shares of this ETF. Based on the last four, quarterly, dividend payments the yield is 2,99%. With this purchase I expect to add €23,85 to my yearly dividend income. The dividend of the AEX index ETF is not that steady, because also cyclical companies are part of it so I don’t expect to see the dividends of this ETF increasing on a yearly basis.
Dividend development of the last few years:
This ETF is following the AEX index. The AEX index is consisting out of the 25 most frequently traded securities listed on the Amsterdam Stock Exchange. I purchased this ETF to increase the euro investments in my portfolio, because last 2 years I relatively bought a lot of stocks listed at the NASDAQ or NYSE. Also I consistently invest part of my money in ETF’s to add more diversity to my portfolio. The AEX index is partially consisting out of huge companies so I know that this ETF also has dollar exposure.
The top 4 stocks in the AEX index are Royal Dutch Shell (6,8% yield), Unilever (2,4% yield), ING Group (5,6% yield) and ASML (0,9% yield) and these 4 stocks have a weighting of over 50% together. I already have positions in these 4 stocks so with the purchase of this ETF my exposure increases. Eve Online Player Diary
The board of directors of Bank of America announced that the quarterly dividend will be increased with 60% to $0,12 per share beginning in the 3rd quarter of 2017. This means the yearly dividend will be increased from $0,30 per share to $0,48 per share. With this dividend increase the yield of Bank of America shares is increasing from 1,24% to 1,98%.
The board also announced that autorization of a stock repurchase program of $12 billion. This is approximately 5% of the outstanding number of shares.
I have 33 shares of bank of america in my portfolio. The yearly expected dividend income will increase with $5,94 as a result of this dividend increase.
In June I received the following dividends:
USD dividends ~ $32,82 total:
Simon Property Group $7,00
Johnson & Johnson $3,36
Wisdomtree Smallcap Dividend fund $3,60
EUR Dividends ~ €53,59 total:
Royal Dutch Shell €8,39
Think Morningstar High Dividend UCITS ETF €8,25
Think Global Real Estate UCITS ETF €8,63
Think AEX UCITS ETF €9,13
A total of €83,04
Today I bought 100 shares of Fortum Corporation at €14,29. The 2016 dividend was €1,10 so the shares have an initial yield of 7,7%. Based on last years dividend a yearly dividend of €110 is added to the portfolio by this purchase.
Fortum Corporation is an energy corporation listed at the Helsinki stock exchange. Fortum is mainly active in the Nordic countries, Russia, Poland and India. Fortum is an energy company getting their income from operating powerplants, the selling of electricity and heat. Also Fortum is providing waste services.
If sustainablity is one of the key values you use to build up your portfolio, Fortum is unfortunately not for you. Fortum owns stakes in various nuclear plants in Finland and Sweden. Fortum is also active in Hydro Power and Solar Power, but due investments in nuclear plants Fortum forfeits a place in any portfolio where sustainability is also taken into consideration.
The Finnish state has a 50,8% share in Fortum and is considering this a strategic investment to protect key companies from hostile takeovers. So not expect to earn a premium due to a takeover bid.
Fortum has as target to have a payout of 50-80% of the earnings per share excluding one-off items.
Low energy prices are resulting in presure on the earnings per share, but the cashflow is still high enough to maintain the dividend. Against current energy prices the dividend maybe can’t be maintained, but even a big reduction of the dividend will still result in an dividend yield which I consider acceptable.
In May I received the following dividends:
USD dividends ~ $33,17 total:
Macquarie Infrastructure Company $9,24
Smallcap Dividend Fund €1,10
EUR Dividends ~ €94,56 total:
A total of €124,24
Brown-Forman declared at May 25 that the quarterly dividend remains 18,25 cents per share.
A quarterly dividend of 18,25 cents will result in a yearly dividend of $0,73 and a yield of 1,50%
I have 20 shares of Brown-Forman. Brown-Forman will contribute $14,60 to the yearly estimated dividend income.
Brown-Forman is paying regular quarterly dividends for 71 consecutive years and has increased the dividend for 33 consecutive years. Brown-Forman is a member of the S&P’s 500 Dividend Aristorcats Index.