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. 

Recent buys: BIP, BEP, ASML and UNP

Recently I added to four existing holdings.

• On October 11 I purchased another 60 shares of Brookfield Infrastructure Partners $33,50 per share. The current dividend yield is around 4,3%. This new purchase adds more than $ 85 to my annual forward dividend income. 
• On October 11 I purchased another 40 shares of Brookfield Renewable Partners $29 per share. The current dividend yield is around 4,4%. This new purchase adds more than $ 50 to my annual forward dividend income. 
• On October 13 I purchased another 3 shares of ASML for about € 405 per share.
  I purchased my first shares in ASML last month for $474 and my 2nd batch a few weeks ago for € 440. This purchase adds almost € 16 to my annual forward dividend income.
• On October 21 I purchased another 10 shares of Union Pacific Corporation for $190 per share. The current dividend yield is around 2,7%. This new purchase adds more than $ 50 to my annual forward dividend income. 

My current annual dividend income is around € 11.400.

Dividend raises in the last weeks (INTC, BIP, BEP)

In the last few weeks I received several raises that boost my dividend income! So let's see who decided to give me more money and how much!

• On January 26th Intel (INTC) declared a $0.365/share quarterly dividend. This was a 5% increase from its prior dividend. This raise will add just over € 5 to my dividend income.
• On February 2nd Brookfield Infrastructure Partners (BIP) declared a $0.54/share quarterly dividend, which is a 5.9% increase from its prior dividend of $0.51. This raise will add just over € 6 to my dividend income.
• On February 4th Brookfield Renewable Partners (BEP) declared a $0.32/share quarterly dividend, which is a 5.3% increase from its prior dividend of $0.3038.This raise will add just over € 5 to my dividend income.

All of these raises combined will deliver an annual income boost of almost € 17 in 2022 (and hopefully more after 2022!). In total I have received raises which will boost my annual dividend income by over € 50. That's a solid start of the year,

 

Recent buys: BIP, MRK, CMI & BEP

I haven't been active with my posts last weeks. However I did have some purchases in my brokerage account. So what did I buy?

• On 9 July I purchased 28 shares of BIP for $ 56,04 per share. This new purchase adds around $57 to my annual forward dividend income. My total position is now 60 shares, which makes it an above average position in terms of portfolio weight.
• On 25 August I purchased 27 shares of MRK for $ 76,90 per share. This new purchase adds around $70 to my annual forward dividend income. My total position is now 50 shares, which makes it an above average position in terms of portfolio weight.
• On 22 September I started a new position in CMI. I purchased 10 shares of CMI for $ 223,24 per share. This new purchase adds around $58 to my annual forward dividend income.
• On 6 October I purchased 38 shares of BEP for $ 35,61 per share. This new purchase adds around $46 to my annual forward dividend income. My total position is now 50 shares, which makes it an above average position in terms of portfolio weight.

With this purchases my annual forward dividend income grew by € 200 from to more than € 2.500. Therefore I reached the milestone of more than €200 in dividend income per month. Let's rock on!

Four recent dividend increases (BEP, BIP, INTC and Unilever)

During the last weeks I received a few dividend increases! Of course I am happy with these raises, especially after a somewhat sobering 2020 in terms of dividend growth. So let's take a look at the raises.

Intel

On January 21 Intel Corporation reported fourth-quarter and full-year 2020 financial results. The company also announced that its board of directors approved a cash dividend increase of five percent to $1.39 per share on an annual basis. The board declared a quarterly dividend of $0.3475 per share on the company’s common stock, which will be payable on March 1 to shareholders of record on February 7.

Since my purchase of INTC shares back in 2013 the dividend growth has been around 6% annualy. That is not bad, but it's not swinging for the fences either. However based on the total stock return my purchase is a success nonetheless. Including dividends and FOREX changes my purchase yielded 16,5% annualy till now. I'll hang 'on for now.

Brookfield Infrastructure Partner

On February 2 Brookfield Infrastructure Partners (BIP) declared a $0.51/share quarterly dividend, which is a 5.2% increase from its prior dividend of $0.48. It's my first dividend raise from BIP since I purchased shares only in July 2020. With its current yield of around 4% a raise of 5% is right around what you can expect I guess. I'll take it!

Brookfield Renewable Partners

On February 4 Brookfield Renewable Partners (BEP) declared a $0.3038/share quarterly dividend, which is a 5.1% increase from its prior dividend of $0.2890 (split adjusted). It's my second dividend raise from BEP since I purchased shares back in 2019. I definitely want to add to this position because I believe in its business model, but shares have soared since my purchase. My original purchase had a dividend yield of almost 6%, currently BEP shares have a dividend yield of just 2,6%. That's a big difference. I'll just have to wait a bit I guess.

Unilever

On February 4 the maker of Marmite and Dove soap raised the dividend by 4% to €0,4268 per share. This is my 7th raise since my original purchase back in 2013. Dividend growth during that timeframe is around 6,6% annualy which seems more than fine, considering its current dividend yield of 3,7%. However total return has been a bit muted with 'just' 6,9% per year. I'd consider adding a few shares at its current valuation but it is one of my bigger positions already so maybe I'll just have to wait.

Summary

In total I received four dividend raises which raised my forward dividend income by about € 12,50. Based on my portfolio's dividend yield of 3,8% I have to invest € 330 to get this kind of dividend income, but now I get it for free!

Let's see what more 2021 has to offer!

Recent buy: Brookfield Infrastructure Partners (BIP)

Last week I purchased 32 shares of Brookfield Infrastructure Partners (ticker: BIP) for $41,62 per share. BIP pays a quarterly dividend of $0,485 so this purchase adds roughly $62 per year before taxed and FX-change.

The reasons of my purchase are as follows:

• BIP operates a diversified collection of assets generating resilient long-term cash flows. Regulatory frameworks and contracted capacity leads to predictable cash flows.
• Assets are in various businesses like transportation, utilities, energy, data infrastructure which can be described as recession resistant.
• Its business is diversified over different areas, but also in a geographic manner. 
• No significant debt maturities in next five years.
• Yield of 4,7%.
• Dividend growth of more than 9% per year in the last five years.
• Price-to-AFFO is around 16x, which seems like a fair price (but who knows!)
• Desire to further increase the diversification in my own portfolio by adding another utility-like business.

Thanks for reading! What do you think of my purchase?