Tuesday, March 31, 2020

Dividend raise: Realty Income

Amidst all the terrible news surrounding COVID-19, I received my 12th dividend raise of 2020. A few days ago Realty Income (O) announced a raise in their monthly dividend from $0,2275 to $0,2230. This raise adds a whopping € 0,14 to my annual dividend income. Ka-ching!

All jokes aside, Realty Income increases their dividend on more than one occasion each year. Last year they raised the dividend 5 times. This is their third raise already in 2020. Hopefully there's more to come this year!

So far this is my 12th dividend raise. These raises combined have added almost € 90 to my forward annual dividend income. Of course I expect more raises during the rest of 2020. I'll keep you updated!

Did you like the dividend raise of O? Do you think the dividend is safe during COVID-19 times? 

Wednesday, March 11, 2020

Recent buy: Royal Dutch Shell

Last week I've purchased another batch of shares. It was finally time for me to pounce on the recent weakness in oil stocks. Currently I have three oil related stocks in my portfolio: Exxon Mobil, Kinder Morgan and Royal Dutch Shell. I decided to add 40 shares to my current position of Royal Dutch Shell for €20.50 per share. This is the lowest price I paid in all of my RDS purchases in 6 years.

My reasoning is as follows:
  • Shell is a fundamentally sound company and also important: it's an integrated energy company. Lower oil prices are obviously bad for upstream business (exploration and production) but margins for downstream operations (refineries) are increasing.
  • Management seems to be doing a good job with unloading assets at times with higher oil prices and buying back shares when prices are low. 
  • Oil prices will fluctuate. They have so done in the past and will do so in the future. I still see future potential in the oil business (like for 20-30 years or so) before alternatives are economically feasible and provide enough (and stable!) energy. The world's population is growing to 9 billion people and these people need energy. Shell can and will provide these needs. 
  • The dividend yield of 8% looks awesome! 
  • I wanted to strengthen my EURO-denominated part of the portfolio. About 75% of my stock portfolio is listed in US dollars. I am not too uncomfortable with that right now, but it still provided me with an extra argument to purchase RDS.
I now own 150 shares of RDS. These new 40 shares add roughly €67 to my annual forward dividend income which now stands at €1.813.

What do you think of my purchase? And my reasoning?

Sunday, March 8, 2020

Monthly report: February 2020

It's already March, so it's time for my regular monthly dividend report! 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?!

I received € 93 after taxes. This is a huge decline from last year, but that's because my own employer paid its dividend a month earlier. If I look at my progress based on the cumulative dividend  income this year I am about 40% ahead compared to last year. That sounds a lot better!

Last month has been volatile with all the Corona issues and its impact on the stock market. I am not too worried however, and decided that I should use the moment to increase the size of one of my holdings. I'll write about it in the next blog post.

The underlying treemap shows the results per ticker relative to its size in my portfolio. The color green suggests an increase, but that's not true. The color is based on the best and worst performer in my portfolio. BEP with an increase of 1,1% is my best performer, but that's actually the only company that is worth more since last month. The rest of my companies has declined in price, between 5% to almost 20% for RDSA and AFL.

How was your month? Did you buy or sell last month?