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?

Friday, April 9, 2021

Recent buy: TROW

A few days ago I added to my existing position in T. Rowe Price (ticker: TROW). I purchased my first 20 shares back in 2016 when the dividend yield was around 2,9%. The Price/Earnings-ratio at the time of my first purchas was around 17,5x. In those five years the quarterly dividend has exactly doubled, and the share price followed suit. The shares of TROW outperformed the S&P500 by a wide margin. Needless to say I am more than satisfied with this investment.

Currently TROW is valued more or less at the same P/E-ratio albeit with a slighly lower dividend yield. The company is firing on all cylinders, has improved its net income margin, decreased the number of oustanding shares by almost 10% and still has no debt whatsoever. Obviously the performance was boosted by increasing share prices accross the board.


Even though my position in TROW was already slightly bigger than average, I decided to increase my position by 50% by purchasing another 10 shares for $ 176,70 per share. This purchase added about $43  to my forward dividend income which currently stands at about € 2.060 before tax.

What do you tink of my purchase of TROW?


Monday, April 5, 2021

Dividend report: March 2021

March 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 about 7%. It's not bad considering what happened last year when Shell had a major dividend cut. However, I did have some nice raises last year, for instance from BBL and TROW and Aflac. I also added to my position in Aflac last year and opened a new position in BIP.

All in all I received more than € 200 after tax from my investments, which is a milestone! Besides the month of January when I receive my annual dividend in Brink, I have never reached such a high passive income. I might not reach this milestone again for six months because of the semi-annual payout from BBL but we'll see what happens!

With a great first month, a decent 2nd and a fine 3rd month, 2021 is off to a good start. With my latest addition in Ahold Delhaize my dividend income increased to more than € 2.000. Let's keep it going! 

How was your March?

Saturday, March 27, 2021

Recent buy: Ahold-Delhaize

I few days ago I started a position in Ahold Delhaize (ticker: AD). I outlined my reasons in my recent Seeking Alpha article which you can read here. I want to strengthen my Euro-denominated part of the portfolio. Ahold Delhaize yields around 3,9% and raised its dividend with a whopping 18% last time around. It is reasonably priced at the moment (at least in my opinion). It offers a stable business model with room to grow with its online business like Bol.com.


I added 60 shares for about € 23 per share. This purchase will add € 54 to my annual dividend income stream which stands at around € 2.025 pre-tax. With this purchse I reached a milestone of € 2.000 in dividend income! My next milestone will be € 2.400 (which is €200 per month on average). Hopefully I can reach this by the end of the year!

What do you think of my purchase?

Tuesday, March 23, 2021

Ahold Delhaize: A Big European Retailer At A Reasonable Price

I’ve been a dividend investor for almost eight years. One of my first purchases back in 2013 was Walmart (WMT). This purchase was successful based on the total return of around 10% per year, but the dividend growth has been rather slow. Right now I want to increase the Euro-denominated part of my dividend portfolio. This article will explain why I chose to start a position in Koninklijke Ahold Delhaize, a competitor of Walmart in the US market.

Business model

Ahold Delhaize (ADRNY) is a Dutch grocery retail company. Its business model includes supermarkets, convenience stores, hypermarkets, online grocery, online non-food, drugstores, and liquor stores. It’s focused on the US and European market. In the US the biggest local brands are Food Lion, Stop & Shop and Giant. In Europe the biggest local brands are Albert Heijn (The Netherlands), Delhaize (Belgium) and Mega Image (Romania). Roughly 40% of revenues are made in Europe and the other 60% in US markets. The biggest competitors in the US markets are (among others) Walmart, Target (TGT) and Kroger (KR).