Thursday, November 28, 2019

Recent buy: Brink

In my last monthly report I hinted about a new stock purchase that occured a few weeks ago. I am sorry for not reporting earlier but better late than never I guess!

I purchased 20 additional shares of the company I work for. I work as a real estate and finance consultant for a mid sized management and consulting firm. I like my job very much! It offers me a lot of interesting and challenging projects in the field of real estate and area development. I love solving and optimizing these financial puzzles with Excel spreadsheets but also to be able to give customers quality advice about how to act.

My company has been profitable for at least the last 15 years, even during the big downturn in 2009-2010. The company is fully owned by its employees. There are no outsider shareholders. I really like that, because the interests as shareholders and colleagues are aligned most of the time. Everytime the company performs, everyone profits, whether you are a shareholder or not.

My company has a policy to distribute its earnings based on a theshold for the capitalization rate of at least 30%. Excess funds are distributed as dividends in two payments: a bigger one of 75% just after the financial year has ended and a final payment at the shareholder meeting a few months later.

The valuation of my company is based on a 5.5x multiple of the last three years earnings and the forecast for next year's earnings. Its dividend yield based on last year's dividend is almost 9%. My purchase of 20 additional shares adds roughly € 140 to my annual dividend income (before taxes). This stands at almost € 1.700,-!

As of now this position is about 7% of my portfolio and 16% of my dividend income. My plan is to purchase a lot of new other stocks to further diversify my portfolio. I am able to purchase shares in my company once a year, so hopefully I can purchase another batch next year!

Would you consider purchasing shares in your own company?

Wednesday, November 13, 2019

Dividend report: October 2019

It's time to give an update of the dividends I received last month. Four companies decided to pay me a dividend for my ownership. Total dividends (after tax) are around €35, which is barely an increase compared to last year. October definitely is a slow month for me.

You can see the breakdown in the table below.

As of now, my annual dividend income is roughly € 1.700 before taxes. This is an increase of €175 compared to last month. This is because of a stock purchase I did not report earlier. I'll come to that in a later post.

I made a new tree chart of my portfolio which shows the weights of my positions but also the price performance during the last month. Green are the best performers, red are the worst. In this case mainly BAX and IBM, and some minor decreases in a few other stocks. Winners are INTC, UNP, TROW, PM, BEP and ACCEL. They all gained about 8 to 12% last month, which is nice for my portfolio value, but not so much for a possible buying oppurtunity.

October is a slow month for me. How was your October? Would you consider purchasing a stock just because it pays in a slow month?