Friday, September 13, 2019

Dividend raise: Philip Morris (+3%)

Earlier this week Philip Morris (ticker: PM) raised its quarterly dividend from $1,14 to $1,17. This is a raise of almost 3%. It adds about € 2 to my annual dividend income (before taxes). 

Since my purchase of PM shares back in 2013, I've received six dividend raises. The compounded annual dividend growth rate of 3,7% is not exactly what I expected. Let's hope the dividend growth picks up, maybe after a merger with Altria. Who knows.

This year I've received 19 dividend raises that added over € 55 to my annual dividend income so far.




















Are you a shareholder of PM? And what do you think about its dividend raise?

Thursday, September 5, 2019

Brookfield Renewable Partners: Have Your Cake And Eat It Too

Brookfield Renewable Partners L.P. (BEP) is a globally diversified, multitechnology, owner and operator of renewable power assets. In my last article I wrote about ESG investing and whether Ecolab could be an addition to my portfolio. In this article I’ll take a dive into Brookfield Renewable Partners.

Business model
The business model of BEP is actually rather simple. They acquire and develop renewable power assets and businesses (mainly hydro, solar and wind), finance these assets with a mix of debt (investment grade basis) and equity and optimize cash flow and value utilizing their operating expertise. BEP locks in stable cash flows via long-term (usually 20-year), inflation-adjusted power purchase agreements (PPAs). These contracts are mostly entered into with utilities, distribution companies, and industrial users. Most of these counterparties have investment-grade credit ratings, and the weighted average remaining contract is for 16 years.

Read the rest of this article on Seeking Alpha!

Sunday, September 1, 2019

Dividend report: August 2019

It's time to give an update of the dividends I received last month. Five companies decided to pay me a dividend for my ownership. Total dividends (after tax) are around € 91, which is an increase of 30% compared to last year. The growth was fueled by solid dividend increases from KMI and DE and a new position in T

You can see the breakdown in the table below.













Omega Healthcare is still in the process of improving their financial performance and making arrangements with some of their biggest tenants. Despite these issues the stoch price has risen about 10% in the last month and is nearing its highest price ever. I am contemplating reducing my position since it is almost 10% of my portfolio.


It's been my best August so far! As of now, my annual dividend income hovers around € 1.525 before taxes. This is a slight increase from last months € 1.485. This is because of the change in exchange rate (USD.EUR).

How was your month?

Tuesday, August 27, 2019

Dividend raise: Billiton (+24%)

Last week Billiton (ticker: BBL) raised its semi-annual dividend. The 2nd payment was $1.26 per share last year and is raised to $1.56. This is a hefty raise of 24% and adds roughly € 7,50 to my annual dividend income (before taxes).

Billiton has a somewhat odd dividend history since my purchase back in 2013. They slashed the dividend back in 2016 but raised it during the last years back to the level of 2015. And on top of that in 2019 they declared a special dividend worth about one year of dividends. Even though it has been a rocky road, I am glad I didn't sell my investment back in 2016 for $20 a share. BBL is now priced at about $50 per share. So there might be a lesson here to not automatically sell after a dividend cut!














This year I've received 18 dividend raises that added about € 55 to my annual dividend income so far.



















Are you a shareholder of BBL? And what do you think about its dividend prospects?

Wednesday, August 21, 2019

ESG Investing: The Case of Ecolab

Ecolab Inc. (ECL), headquartered in St. Paul, Minnesota, is an American global provider of water, hygiene and energy technologies and services to the food, energy, healthcare, industrial and hospitality markets.

Lately, I've been tracking companies that rank higher on various ESG guidelines. ESG refers to the three central factors in measuring the sustainability and ethical impact of an investment in a company or business: Environmental, Social and Governance. For instance, Ecolab is the 2nd biggest position (after Microsoft) in the MSCI USA ESG Select Index. This index is optimized to be sector diversified, targeting companies with high ESG ratings in each sector.

The question is whether these criteria could help to better determine the future financial performance of companies and the potential return for its investors. Let's take a look at Ecolab and discuss whether it can be a good addition to your portfolio at current prices.

Saturday, August 17, 2019

Dividend raise: Union Pacific (+10%)

Three weeks ago Union Pacific (UNP) declared a $0.97/share quarterly dividend, which is a 10% increase from its prior quarterly dividend of $0.88. Since I own 15 share of UNP this raise adds about € 5 to my forward annual dividend income. This is a really solid dividend increase in my book, and it's its second raise this year!


I purchased my shares about 4 years ago for $108 a piece. Currently they are worth around $162, so that's roughly an 11% annual rate of return, based just on the price appreciation alone.

In the past years I've received about 10% of my original purchase price in dividends. The dividend has grown from $0,55 per share (quarterly) to its current level of $0,97 per share. That's an awesome growth rate of 14% each year. At this pace the dividend is expected to double in value about every six years! I am really content to have added this company to my portfolio a few years ago.
So far this year I've received 17 dividend raises which added almost $50 to my annual income stream.


















What do you think the dividend raise by UNP? Do you consider adding shares to your portfolio at its current price?

Thursday, August 1, 2019

Dividend report: July 2019

It's time to give an update of the dividends I received last month. Five companies decided to pay me a dividend for my ownership. Total dividends (after tax) are around € 72, which is an increase of more than 35% compared to last year. The growth was fueled by a bigger dividend from my own employer Brink. Last year I doubled my position to 20 shares, hence the bigger payout. I expect to purchase another batch after the summer. Other dividend increases have been rather muted (O, KO). BAX has grown a lot relatively, but it's a rather small position. PM raised its dividend a quarter early last year. I expect them to raise their dividend next quarter.

You can see the breakdown in the table below.
















It's been my best July so far!



As of now, my annual dividend income hovers around € 1.485 before taxes. This is a solid increase from last months € 1.425. Most of this increase is due to my new position in BEP.











In terms of cumulative dividend income I am about 30% ahead compared to last year. Let's keep rocking!

How was your month?