Wednesday, January 11, 2023

Recent buys (TXN, TROW, UNP & HASI) and sells (BEP & BIP)

During the last two weeks I made various moves because of a new tax rule. As a result of U.S. Internal Revenue Regulations taking effect 1 January 2023, new withholding charges will be applied to sales proceeds from certain Publicly Traded Partnerships ("PTPs”) held by investors who are not U.S. taxpayers. The amount of withholding is 10% of sale or distribution proceeds.  This means 10% of the amount of funds that would settle resulting from any transaction or distribution, not just 10% on any calculated profit. I had two positions which are affected by this new regulations. I decided to sell my position in BEP and BIP even though I added a few times during the last year.

  • I sold 200 shares of BEP for about $ 26 per share. I 'lost' $256 in dividend income (before tax).
  • I sold 150 shares of BIP for about $ 32 per share. I 'lost' $216 in dividend income (before tax).

I used the proceeds to add to three existing holdings and open one new position.

  • On January 6 I purchased another 10 shares of Texas Instruments for $176 per share. The current dividend yield is around 2,8%. This purchase adds about $ 50 to my annual forward dividend income. 
  • On January 6 I purchased another 10 shares of T. Rowe Price (TROW) for $113 per share. The dividend yield at the moment of purchase was around 3,3%. This purchase also adds about $ 50 to my annual forward dividend income. 
  • On January 6 I purchased another 5 shares of Union Pacific (UNP) for about $213 per share. The dividend yield at the moment of purchase was around 2,4%. This purchase adds about $ 25 to my annual forward dividend income. 
  • On November 29 I opened a new position in Hannon Armstrong Sustainable Infrastructure. I purchased 130 shares for about $31 per share. The dividend yield at the moment of purchase was around 4,8%. This new purchase adds about $ 195 to my annual forward dividend income. 
Summary
Because of my sells in BIP and BEP I lost around $470 in dividend income. I used the proceeds to add to three existing holdings and open 1 new position. I gained about $320 in dividenc income. That sets me back a little but but I still have some cash laying around for 1 or 2 new purchases this month. My current annual dividend income is around € 11.300. 

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