Thursday, February 28, 2019

Dividend report - February 19

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 €87, 45% more than last year.

You can see the breakdown in the table below.


The report shows all sorts of things! Firstly there are big dividend raises from Deere and Kinder Morgan. I don't expect these kind of raises to continue, but they are really nice for now!

Secondly there's O with a smaller year-on-year increase. And there's Omega Healthcare (OHI) which stopped raising its dividend since last year. They have to work out various issues regarding to its tenants. I read the recent quarterly earnings report and things are definitely not solved but for now I decided to stand pat.

Finally it's the first month T is contributing to my monthly dividend income. I opened a position earlier this year. Really excited to see the first $20 paycheck returned to me!

Yearly dividend income (before taxes) stands at around €1250 which is a slight increase since last report. This is due to recent dividend raises and a favorable USD.EUR currency exchange rate.

Sunday, February 24, 2019

Coca-Cola raised its dividend by 2,6%

A few days ago Coca-Cola (KO) announced a quarterly dividend raise from $0,39 to $0,40. This raise adds sightly more than € 1 to my annual dividend income.










Obviously this raise is not what I expect from my companies in general, but for KO I expected it a little but. Their payout ratio is rather high and earnings growth has been a little muted in the past years. I am an owner of KO since July 2013. I purchased shares for a price of around $40. Currently shares are worth over $45, so in price appreciation alone this position has netted me just over 2% per year. However, if you add in the dividend along the ride, the total return is bumped up to almost 6%. This is not really what I would like to see . Compared to other companies and indices KO underperformed during my holding period.










So far I received 9 dividend raises in 2019. These raises combined have added over € 21 to my forward annual dividend income. Of course I expect more raises during the rest of the year. I'll keep you updated!

Did you like the dividend raise of KO? Do you consider selling because of the low dividend growth rate?

Thursday, February 21, 2019

Walmart raised its dividend by 1,9%


A few days ago Walmart (WMT) announced a quarterly dividend raise from $0,52 to $0,53. This raise of less than 2% adds not even € 1 to my annual dividend income.







Obviously this raise is not what I expect from my companies in general, but for WMT it seems to be the norm the last few years. I am an owner of WMT since July 2013. I purchased share for a price of around $75. Currently shares are worth over $99, so in price appreciation alone this position has netted me just over 5% per year. However, if you add in the dividend along the ride, the total return is bumped up to 7,5%. Normally this is a solid performance but compared to other companies and indices WMT underperformed during my holding period.











So far I received 8 dividend raises in 2019. These raises combined have added over € 20 to my forward annual dividend income. Of course I expect more raises during the rest of the year. I'll keep you updated!

Did you like the dividend raise of WMT? Do you consider selling because of the low dividend growth rate?

Sunday, February 17, 2019

TROW raised its dividend by 8,6%

A few days ago T. Rowe Price (TROW) announced a quarterly dividend raise from $0,70 to $0,76. This raise of almost 9% adds just over € 4 to my annual dividend income.

I am an owner of TROW since July 2016. I purchased share for a price of around $75. Currently shares are worth over $ 97, so in price appreciation alone this position has netted me about 11% per year. However, if you add in the dividend along the ride, the total return is bumped up to 14,4%. I honestly have nothing to complain here!

The dividend has grown from $0,54 quarterly to $0,76. This is an awesome dividend growth rate of 15%. However, its payout ratio is still rather comfortable at just over 40% based on the new dividend! I therefore expect the growth to continue. Its P/E-ratio looks solid as well (13x). Together with the dividend yield of 3,1% I consider adding to this position in the near future.











So far I received 7 dividend raises in 2019. These raises combined have added almost € 20 to my forward annual dividend income. Of course I expect more raises during the rest of the year. I'll keep you updated!

Did you like the dividend raise of TROW? Do you consider purchasing TROW at this moment? How have your dividend raises been so far in general?

Monday, February 11, 2019

UNP raised its dividend by 10%

A few days ago Union Pacific (UNP) declared a $0.88/share quarterly dividend, which is a 10% increase from its prior quarterly dividend of $0.80. Since I own 15 share of UNP this raise adds about € 4 to my forward annual dividend income. This is a really solid dividend increase in my book!

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 $0,88 per share. That's an awesome growth rate of 13% 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.









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

Thursday, February 7, 2019

Aflac raised its dividend by 3,8%

A few days ago Aflac decided to raise its quarterly dividend by $0,01 to $0,27. This is a raise of 3,8% and adds roughly € 2 to my annual dividend income! Ka ching!!

So far Aflac has been a solid perfomer in my dividend portfolio. I bought a block of 56 shares, about 4,5 years ago. Its share adjusted price at that time was $30,70. Currently it's price is around $48. That is a rate of return of 10% per year, without accounting for the dividends.

Its quarterly dividend at the time of my purchase was $0,185. This means that the dividend compounded at roughly 9% each year.

Solid dividend income that grows rather nicely, with a nice rate of return on the share price as well. What more do you want from a stock?

Do you own Aflac? What did you think of its latest dividend raise?


Friday, February 1, 2019

Dividend report - January 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 €80, 250% more than last year.

Obviously this growth rate is skewed by the special dividend from BBL. However, if you remove the BBL dividend the growth rate is still more than 20%. I really like this growth and hope to further increase it this year!

You can see the breakdown in the table below.


What is nice to notice is that this is the result of pure dividend growth and reinvestment. As you may have read earlier, I didn't deposit any new funds into this account for the last two years. So any increase in dividend income is because of the raises I received earlier this year. Big growers this month are BAX and in a lesser extent PM. Furthermore, last year I bought a position in O with the cumulative dividends I received so that's also a big plus to the monthly dividend income. I am curious to see by how much Walmart will raise its dividend in the upcoming period.

Purchases
None this month.

Yearly forward dividend
Yearly dividend income (before taxes) remains unchanged around €1225.

Friday, January 25, 2019

Intel raises dividend by 5%

It's time for the second dividend raise of the year! Intel (ticker: INTC) decided to send me more money each quarter! They raised their quarterly dividend to $0.315 per share. That works out to a raise of $0,06 per share each year. I currently own 63 shares, so that's an extra $4 each year!

I have been a long-term shareholder of Intel. I bought my shares back in July 2013. The dividend growth is not exceptional but with slightly more than 6% per year nothing to sneeze at either.

However, if you look at it from a total return perspective, this investment has been quite amazing! The annual return of the stock price is around 13%. The fact that I received over 25% of my original investment in the form of dividends, adds around 3% to the return. Finally I have had some luck with foreign currency exchange rates, so that adds another 3% to the return. In total my return on investment has been 19% per year for almost 6 years!

How has your Intel investment performed over the years? Are you contemplating adding to your Intel position on the backdrop of its recent earnings report?

Sunday, January 20, 2019

Dividend raise - Realty Income

It's time for the first dividend raise of the year! Realty Income (ticker: O) decided to send me more money each month! They raised their monthly dividend to $0.2255 per share. That works out to a raise of $0,06 per share each year. I currently own 25 shares, so that's an extra $1.50 each year! Ka-ching!

All jokes aside, Realty Income increases their dividend on more than one occasion each year, so hopefully there's more to come this year!


Wednesday, January 16, 2019

Recent buy: AT&T (T)

Earlier in January I purchased my first shares in 2019. I used around $1.200 to purchase 42 shares in AT&T (ticker symbol: T) for a price of $28.65. This will add around €75 to my annual forward dividend income.

My reasoning is as follows:
  • T seemed undervalued based on a PE-ratio, compared to earlier years.
  • T's yield at the time of my purchase was monstrous. There's no need for high growth with a yield of 7,1%. T's recent dividend growth is muted but coupled with a historically high yield this seems fine.
  • Major, recent acquisitions of T are TimeWarner for $85 billion (in 2016) and DirectTV for $48 billion (in 2015). Hopefully this will provide top line growth and a strengthening of AT&T's position in the content space.
  • Its current debt leven is worring, but muted dividend growth combined with some asset sales should provide enough wiggle room in order to reduce debt levels.
  • Finally, I had no exposure towards telecommunications in my dividend portfolio. The addition of T seems logical from that perspective.
What do you think of my purchase of T? Did you recently purchased shares of T?

Monday, January 14, 2019

Goals for 2019

I've read a few posts of fellow bloggers about their goals for 2019. Earlier I promised I would tell a little bit more about my plans for this year. Here goes!

1. Deposits

I've setup two monthly (automatic) payments.
  • € 50,- towards my tax free retirement account.
  • € 150,- towards my regular investment account.
I am eligible to fund my tax free retirement accounts with roughly € 1.400,- this year. So 12x € 50,- is € 600,-. From last year I expect to receive a tax break of € 800,-. In May 2019 I will use this money to fund my tax free retirement account for the remaining contribution room.

Finally I would like to increase my share in the company where I'm employed. I work as a consultant for a midsize consultancy firm specialised in real estate and area development. The firm is owned by its employees and everybody has the oppurtunity to participate. The value of the company and its shares is based on a fixed formula where the last three years of earnings and the forecast for the current year are averaged and multiplied by a factor. Share owners receive a dividend and the amount depends on the company earnings and liquidity position. I currently have a small stake which I'd like to increase a bit. So therefore I need to save another € 800,-.

So all in all I want to deposit at least € 4.000,- this year towards my various investments.
  • € 1.800,- regular investment account
  • € 1.400,- tax free retirement account
  • € 800,- employer stock program

2. Forward annual income (dividend portfolio)

Currently I am expecting to receive around € 1.200,- (before tax) in dividends in 2018. Because of new deposits (see #1), dividend reinvestment and dividend growth, I am targeting an annual forward dividend income of € 1.400,- (+16%). Let's break it down:
  • New deposits: +€75,-
  • Reinvestment of dividend income: +€50,-
  • Dividend growth: €75,-.

3. Four quarterly buys

I am planning to purchase new shares on a quarterly basis. I am pooling together monthly deposits and dividends to purchase new blocks of shares for around €700,- each time. Since last year I pay a platform fee of €5,- per month but this fee is deducted from any transaction costs in that month. So this works out to one "free" trade per month for a cost of €60, per year. This new fee structure is used by various cheap brokers in The Netherlands, so I really have no alternative.

4. Regular blogging

Because of my new monthly deposit and the fact that I am planning to buy on a quarterly basis gives me a lot lot of motivation to invest more time in my writing. Mainly for my blog but perhaps some Seeking Alpha articles as well. The extra income is nice but that's not the goal persé. I am targeting to write a weekly blog (so about 52 blogs in total). 

So that's it for now. Let's see how this year turns out!

What do you think of my plans?Are your plans for 2019 ready? 

Thursday, January 10, 2019

Dividend growth 2017 and 2018

Today I am going to look back a bit on the growth of the dividends of the companies I own. Normally I do this more frequently but in the past two years I haven't updated my blog. So here goes!


In 2016 I received about €785 in dividends. This is net (after dividend tax) and calculated using the USD.EUR rate at the time of the dividend payment. In reality however I don't convert and just use the USD to reinvest in a new purchase. This is a rather big decline compared to 2015. There are several reasons:
  • Various serious dividend cuts
    • Kinder Morgan (KMI)
    • Billiton (BBL)
    • Textainer (TGH)
  • Spin-off Baxalta from Baxter and subsequent dividend reduction.
In 2017 things got better. I received a net amount of €856 which is an increase of 9%. I haven't deposited any new funds so I guess in a normal year I can expect this kind of dividend growth. The current yield of my portfolio is around 4% so the average weighted dividend growth of my existing holdings is around 5%.

In 2018 the growth in dividend income was slightly higher (+10%). I received some big increases (>15%) in 2018. Billiton, Kinder Morgan, Aflac, Union Pacific and T Rowe Price come to mind. However my biggest holdings in terms of income (Royal Dutch Shell and Omega Healthcare) decided to keep the dividend at its place. This kind of muted the overall dividend growth. I don't expect these kind of raises at my current job, so I'm quite satisfied with a 10% increase.

I expect a higher dividend growth in 2019, because I started to deposit new funds on a monthly basis. Depending on the amount of available funds I hope to achieve a growth of 15-16%. More on that later though!

How was your 2018 dividend wise? Are you satisfied with your dividend growth?

Tuesday, January 8, 2019

Dividend report - december 2018

It's time to give an update of the dividends of last months. Ten companies decided to pay me a dividend for my ownership. Total dividends (after tax) are around €128, roughly 16% more than last year. I really like this growth and hope to further increase it this year!

You can see the breakdown in the table below.

What is nice to notice is that this is the result of pure dividend growth and reinvestment. As you may have read earlier, I didn't deposit any new funds into this account for the last two years. So any increase in dividend income is because of the raises I received earlier this year. Big growers are UNP, TROW, AFL and INTC. Last year I bought a position in O with the cumulative dividends I received so that's also a big plus to the monthly dividend income.

Purchases
None this month.

Yearly forward dividend
Yearly dividend income (before taxes) is around €1225.

Saturday, January 5, 2019

Recap of the last two years of dividend growth investing

So earlier I told you a little but about my leave of absence ?

Let's give you a brief update of my buys and sells in the last two years:


  • I dripped a few shares of RDSA with their regular dividend. My position is becoming quite large. As of now it is almost 10% of my portfolio and about 15% of my forward dividend income. For now I still believe that RDSA is doing the right things. With extra deposits in the future its weight in my portfolio will slowly come down.
  • In January 2018 I purchased 25 shares of Realty Income (ticker: O) for a purchase price of roughly $53. I loved (and still do!) their monthly dividend rhythm. Current price is about $62 so for now it has been a great investment for a currency neutral rate of return (including dividends) of 23% annualized.
  • In October 2018 I sold my shares of  SOUHY, the mining spin-off from Billiton I got back in 2015. It was a rather small position but still performed nicely! Accounting for the dividends its rate of return was about 20% per year. Too bad the position was so small!
So as of now I will give a more detailed update whenever I enter into a new position or add to an existing one.

Thursday, January 3, 2019

Back after more than two years!

I posted my last blogpost in December of 2016, more than two years ago. What happened??

Life happened I guess. Two years ago we just purchased a new home. Obviously we needed the money for all kinds of stuff for our new home. So deposits into my investment account were stopped. After that we got pregnant! Again. But not with one baby, but with two! So all in all, we went from one 3yr old boy to a wrecking crew of three. I can tell you, that's a hell of a lot of work. As of now the oldest is over 4yr old and in kindergarten. The twins are 1yr old. Everyone is healthy and in great shape, so I suppose everything's alright. But I hope that kind of clarifies my leave of absensce.

As of now we are more or less settled - in our home as well as in life - so I can redirect some cashflow into my investment account. During the past two years I haven't deposited any new funds towards my account, but I did reinvest the received dividends on occasion. In a future post I might elaborate a bit more on that. For now I just want to let you know I am back!

I hope to interact more in the coming period with my fellow dividend growth investors or people interested in personal finance in general.