Recent sell (INTC) and buy (BEPC)

On August 20th I made a new portfolio move consisting of a sell and a purchase.

I sold 150 shares of Intel (INTC) for about $182 per share. I bought my first shares more than 10 years ago for $24 per share. I added two times, once in 2021 andthe latest about two years ago in 2022. Intel experienced a significant stock decline after releasing its Q2 earnings. The company’s stock plummeted more than 30% in the periode there-after. Intel reported Q2 revenue of $12.8 billion, a 1% decrease year-over-year. The company’s gross margin fell to 38.7%, and its EPS of $0.02 missed expectations. In response, Intel announced aggressive cost-cutting measures, including a 15% workforce reduction by the end of 2025 and the suspension of its dividend starting in Q4 2024, after it has already been cut earlier in 2023. Additionally, Intel reduced its 2024 gross capital expenditure forecast to $25-27 billion, down from earlier projections. The aggressive cost-cutting measures, while intended to improve financial performance, suggest deeper underlying problems that could affect future growth. The dividend suspension and reduced capital expenditure have further unsettled investors, raising doubts about Intel’s competitiveness and growth prospects.

During my holding period I received about half of my purchase price back in dividend. But despite this dividend cushion I am still on the hole because of the share price depreciation.

As a replacement I bought 80 shares for $28 per share in Brookfield Renewable (BEPC). Brookfield Renewable operates one of the world’s largest publicly traded platforms for renewable power and decarbonization solutions. Their portfolio consists of hydroelectric, wind, solar, distributed energy and sustainable solutions across five continents.

I purchased shares earlier this year but wanted to increase my position in the growing company.

This sell will decrease my dividend income by $75 but my purchase in BEPC will add about $113 to my annual dividend income. I have some cash left which I may use in the coming period to add to an existing position or to enter a new position.

Monthly report: July 2024

July is over. It was a decent month in terms of stock prices. Across the board about +2%. I had some bigger winners like BMY, HASI and MPW. But also some losers like ASML and MRK. These happen to be bigger positions so although the ratio of gainers to losers is in favor of the gainers, the average increase is still relatively limited.

Let's see how many companies sent me a dividend check for my ownership. These checks are the results of decisions I made earlier in life, sometimes years ago, where I decided to purchase shares in these companies. Nowaydays I still collect these checks but I have to do absolutely nothing to receive them. They just get deposited in my brokerage account, no questions asked. Isn't that great?!

A total of about € 175 in dividend income, about the same as last year. This small decrease is mainly the result of a dividend cut from MPW and the recent disposition of my shares in Baxter. Recent purchases of shares in Realty Income (here and here) softened the blow. Dividend growth for my other holdings is somewhat muted.

In the graph below I've shown my monthly dividend income. You can see the rather small decrease from July 2023 but the underlying trend is still up.

In the graph below I've showed my cumulative dividend income. The cumulative dividend income made big jump in June. I expect to see a little growth (compared to last year) in the coming months, but nothing too serious.

Currently my annual dividend income is around about € 13.050, slightly lower compared to last month, but that's due to some moves I did not yet report.

How was your July? What is your watchlist?