Saturday, July 3, 2021

Dividend report: June 2021

June is over! 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?!

Wow, a total of € 330! 14 companies paid me dividends, with my first ever payment from BIP in the month of June. Higher dividends from Unilever due to an increased position. Big dividend increases from Aflac, TROW, UNP and BEP. But most importantly a 2nd dividend payment (€ 3 per share) from my own employer, Brink. This year I received € 13 per share in dividens, based on a price of € 81 on my last purchase. A whopping dividend yield of 16%, which is slightly higher than usual due to a dividend delay in 2020 due to COVID-19. Based on a constant exchange rate my dividend income grew by almost 130% compared to last year. However, because of the decline in the FX-rate the rise in dividend income is about 122% compared to last year. Even without the extra Brink dividend payment the growth would have been about 20% compared to last year, so still solid.

The market value of my portfolio surpassed the € 60k milestone last week. I might write a little post on that later. Currently my annual dividend income is around € 2.180. I do find it somewhat hard to find a good candidate for my purchase(s) during the next month. We'll see what happens in the markets in the coming weeks!

How was your June? What is your watchlist?

Sunday, June 13, 2021

Recent buys: Bristol-Myers Squibb & Merck

Last week I added to a existing position and started a new one. My watchlist was somewhat focused on healthcare/pharma companies. I wanted to strengthen the healthcare part of my portfolio. I only held JNJ, Baxter and BMY and it was a relatively smaller part of my portfolio (about 7% of my total portfolio). I contemplated starting a position in LMT, but wasn't convinced yet. I need to do some more work on that.

So what did I buy?

  • 18 shares of BMY for $ 65,24 per share. This new purchase adds around $35 to my annual forward dividend income. My total position is now 40 shares, which makes it an average position in terms of portfolio weight.
  • 23 shares of MRK for $ 73,23 per share. This new purchase adds around $60 to my annual forward dividend income.
Last year I started my position in Bristol-Myers Squibb. Based on various valuation and dividend metrics Merck seemed like a nice addition to my portfolio as well. I decided to just buy both!

With this purchases my healthcare related stocks are about 10% of my portfolio and my annual forward dividend income grew by € 80 from € 2.070 to € 2.150. The next milestones are € 2.400 in annual income (€200 per month!) and € 60.000,- in portfolio value. The last one is actually rather close. If the markets don't tumble in the coming month I expect to reach this by the end of this month. Let's rock on!

Monday, May 31, 2021

Dividend report: May 2021

May is over! 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 just under € 100. Six companies paid me dividends with my first ever payment from Bristol-Myers Squibb in the month of May. A big raise from Deere, while the rest of my holdings increased their dividend slightly compared to last year. Based on a constant exchange rate my dividend income grew by just over 11% compared to last year. However, because of the decline in the FX-rate I received about the same in Euros.

Currently my dividend income is around € 2.060.  I have about 3% in cash, with more deposits on the way. I am looking to start a new position or to add to my current positions. I do find it somewhat hard to find a good candidate. I kinda missed the INTC drop in the last two weeks, could have used the dip to increase my position slightly. We'll see what happens in the coming weeks!

How was your May? What is your watchlist?

Saturday, May 15, 2021

Dividend raise: Union Pacific (+10%)

Yesterdag Union Pacific (UNP) declared a $1,07 quarterly dividend, which is a 10% increase from its prior quarterly dividend of $0.97. Since I own 15 shares of UNP this raise adds about € 5 to my forward annual dividend income. This is a really solid dividend increase in my book! The last time they raised their dividend was back in the summer of 2019.

I purchased my shares about 6 years ago for $108 a piece. Currently they are worth around $228, so that's roughly an 13% annual rate of return, based just on the price appreciation alone.

In the past years I've received about 15% of my original purchase price in dividends. The dividend has grown from $0,55 per share (quarterly) to its current level of $1,07 per share. That's an awesome growth rate of 12% per year. With this pace my dividend has doubled in the last 6 years. I am really content to have added this company to my portfolio a few years ago.

So far this year I've received 19 dividend raises which added almost €80 to my annual income stream.




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

Thursday, May 6, 2021

Recent dividend increases

Back in February I wrote about various dividend increases. The pace continues in the last weeks with different raises! 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.

Realty Income

On March 16th Realty Income (NYSE:O) declared a $0.235/share monthly dividend, which is a 0.2% increase from its prior dividend of $0.2345. I received 15 dividend raises since my purchase of O back in 2018. The annual dividend growth rate is just over 2%. It's not mindblowing. My return on investment is currently around 12% per annum so I am not complaining either.

Johnson & Johnson

On April 20th Johnson & Johnson (NYSE:JNJ) declared a $1.06/share quarterly dividend, which is a 5% increase from its prior dividend of $1.01. I received two dividend raises since my purchase of JNJ back in 2019. I guess my expectations with regards to the dividend growth rate were met, albeit slightly on the lower end. We'll see what happens next year with the dividend!

Kinder Morgan

On April 21th Kinder Morgan (NYSE:KMI) declared a $0.27/share quarterly dividend, which is a 2.9% increase from its prior dividend of $0.26. Since the infamous dividend cut back in early 2016, the dividend has more than doubled. However the return on my investment is still negative, around -5% on an annual basis. For now I just plan to hold and collect my dividends.

International Business Machines Corporation

On April 27th IBM (NYSE:IBM) declared a $1.64/share quarterly dividend, which is a 0.6% increase from its prior dividend of $1.63. I received seven dividend raises since my purchase of IBM back in 2014. The annual dividend growth rate is just over 6%. I guess I am disappointed with the performance of IBM which moved nowhere in the last 8 years. For now I plan to hold onto this position.

Royal Dutch Shell

On April 29th Shell (NYSE:RDS.A) declared a $0.347/ADS quarterly dividend, which is a 4.2% increase from its prior dividend of $0.333. Since the infamous dividend cut back in 2020, the dividend has risen slightly in $-terms, however because of the decline in the EUR.USD-rate it's basically steady. The return on my investment is still negative, around -2% on an annual basis. For now I just plan to hold and collect my dividends.

Baxter

On May 3th Baxter (NYSE:BAX) declared a $0.28/share quarterly dividend, which is a 14.3% increase from its prior dividend of $0.245. I received several dividend raises since my purchase of BAX back in 2013. The dividend was reduced after the Baxalta spin-off in 2015. After that moment BAX returned to a high dividend growth. And based on my return on investment (around 15% on constant FX-rate) I am quite satisfied! We'll see what happens next year with the dividend.

Summary

Together these raises increased my forward annual dividend income by roughly €7. 


Based on my portfolio's dividend yield of 3,7% I have to invest € 190 to get this kind of dividend income, but now I get it for free! Rock on!

Sunday, May 2, 2021

Dividend report: April 2021

April is over! 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?!

Based on a constant exchange rate my dividend income grew by over 60% compared to last year. Seven companies paid me dividends with my first ever payment from Ahold Delhaize and my first from Cisco in the month of April. The rest of my holdings increased their dividend slightly compared to last year.

I received a few dividend raises in the past two weeks (which I didn't report as of yet) With my latest addition in Ahold Delhaize, TROW and Unilever, my dividend income increased to more than € 2.070.  This increased by about € 70 compared to last month. Let's keep it going! 

How was your April?

Tuesday, April 27, 2021

Recent Buy: Unilever

 A few days ago I added to my existing position in Unilever (ticker: UL). I purchased my first 37 shares back in 2013 when the dividend yield was around 3,6%. The Price/Earnings-ratio at the time of my first purchas was around 20x. In those eight years the quarterly dividend has grown by almost 7% annualy. That's not too bad considering the starting yield. 

Subsequently I purchased additional shares in 2019 and 2020 with starting yields between 3,0 and 3,2%. The P/E-ratio hovered between 17-20x for those purchases. Currently Unilever is valued at a comparable forward P/E-ratio but with a somewhat higher starting yield of 3,6%. 


Even though my position in Unilever is already slightly bigger than average, I decided to increase my position by purchasing another 18 shares for €46,85 per share. This purchase added about €30 to my forward dividend income which currently stands at about € 2.070 before tax.

What do you tink of my purchase of Unilever?