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 $21 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.

Recent buys: ASML, TXN, MPW, AFL & INTC

Recently I opened three new positions and added to two existing holdings. New positions are:

• On August 5 I purchased 3 shares of ASML for about € 474 per share. This purchase adds almost € 16 to my annual forward dividend income. 
• On August 6 I purchased 10 shares of TXN for about $ 163 per share. This new purchase adds almost $ 50 to my annual forward dividend income. 
• On August 6 I purchased 100 shares of MPW for about $ 14 per share. This new purchase adds almost $ 116 to my annual forward dividend income.

Additions to current holdings are:

• On August 5 I purchased 20 shares of AFL for about $ 60 per share. This new purchase adds almost $ 32 to my annual forward dividend income.
• On August 20 I purchased 60 shares of INTC for about $ 29 per share. This new purchase adds almost $ 88 to my annual forward dividend income.

I used about € 7.400,- in cash for these purchases. My dividend income increased by about € 300,- which equates to a dividend yield of roughly 4,1%.

My current forward annual dividend income is about € 11.000

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: Brink and INTC

I haven't been active with my posts last weeks. However I did invest additional money in some of my companies.

On November 11th I purchased 40 additional shares in the company I work for (Brink). I have the option to purchase share once per year. Last year I purchased 20 shares and I explained a bit about how it works. This new purchase adds about € 400 in dividend income per year. I now have a position of exactly 100 shares and it's the biggest position in my portfolio. Hopefully I can add a lot of new money in other positions to keep the position of Brink in my portfolio somewhat in line with the other companies in my portfolio.

On November 17th I purchased 27 additionial shares of Intel (INTC) for about $50 per share. I bought my first shares of INTC back in 2013, so that's more than 8 years ag! At that time shares were priced $24 with a dividiend yield of 3.8%. The currency neutral total return for this batch until now is about 12% per year, so I have nothing to complain about. Dividend growth is around 5% and since that time I have received about 40% of my original purchase price in dividends. INTC's price has been somewhat flat last year, while the market has gone up about 20% (and some other companies a lot more!). I thought it would be a nice moment to add to my existing position. This purchase adds about € 35 in annual dividend income.

With these purchase (and recent dividend increases) my forward annual dividend income is now just over € 2.900. Hopefully I can reach that milestone of € 3.000 before the end of the year!

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!

Dividend raise: Intel (+5%)

It's time for another dividend raise ! Intel (ticker: INTC) decided to send me more money each quarter! They raised their quarterly dividend from $0.315 per share to $0.33 per share. That works out to a raise of $0,06 per share each year, roughly 5% extra. I currently own 63 shares, so that's an extra € 3,50 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 17%. The fact that I received over 29% of my original investment in the form of dividends, adds around 2.5% 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 22% per year for almost 7 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 beat?

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?

New additions to the Dividend Growth Portfolio!

In the last week I've initiated three new positions. I wanted to blog about this earlier but everytime I started, something came up. Now without further ado, my purchases are:

• 63 shares of Intel (INTC) for $23.88 each
• 43 shares of Textainer Group Holdings (TGH) for $34.34 each 
• 28 shares of BHP Billiton (BBL) for $54.70 each

Intel

Intel yields 3.7% at current valuations and has increased dividend for 9 consecutive years. The last 5 years dividend has grown by 14% yearly compounded. Although the technology sector is quite volatile, Intel is a stock I feel comfortable purchasing. I am sure the future holds great things for our society but one of the key ingredients for further growth is technological advancement.  Intel is one of the leading companies on this front. 

Textainer buys and leases sea containers. Textainer offers a nice fat dividend of 5.4%, but is also one of the fastest dividend growers. It has raised dividends for the last 7 years and in the last 5 years it has grown dividends over 50% yearly compounded. Current payout-ratio is 45% so that means there is room to grow. Downside of this company is it's debt/equity-ratio of 2.3x. It uses debt to finance growth, however it's interest ratio is a healthy 3x. Definately one of the more riskier stocks in this portfolio but also a potential gem!

Finally, BHP Billiton. A big exploration and mining corporation. It yields over 4% and I think it was fairly cheap, because it traded near 52week lows. BBL's been raising dividends for 10 years, with yearly increases between 10-20%. As well as Textainer, BLL is a bit more risky than average. This doesn't have to be a problem but I'll try to pick less risky stocks for my next purchase.

These stocks added $200 to my yearly forward dividend which stands at $363. I plan to deposit some more money after my vacation to finalize my first part of the portfolio. After these purchases I will deposit monthly and together with dividend income will initiate new positions or add to existing ones.

Thanks for reading!

What do you think will be good additions to this portfolio? The usual suspects like KO, MCD, PG, JNJ or another company? Let me know!