Recent buy: Ahold Delhaize

Last week I added to my existing position in Ahold Delhaize (ticker: AD). I purchased an additional 40 shares in the company for € 26,70 per share.  I purchased my first 60 shares back in March 2021 for a price af around € 23.

Ahold Delhaize was priced at €30 back in early January. This is a price drop of more than 10%. This has to due with market fluctuations but it was also a reaction on Ahold's latest earnings release with a somewhat muted outlook. However I don't care too much. I find it still remains a stable business model with room to grow with its online business like Bol.com. Management indicated that this could be a future spin-off. We'll see what happens!

My forward dividend annual income increases with about € 33 with this purchase.

Recent dividend raises (TROW, BHP, AD, CSCO, WMT, KO)

In the last week I received several raises that boosted my dividend income! So let's see who decided to give me more money and how much!

• T. Rowe Price Group (TROW) has announced that it will be increasing its dividend by 11% on the 30th of March to $1.20. Given my recent additions to TROW this raise adds more than €16 to my annual dividend income.
• BHP announced a raise in its semi-annual dividend to $ 3 per share (from $2,02 last year). This gigantic raise adds more than €24 to my annual dividend income with just this payment.
• Ahold Delhaize announced a raise in its semi-annual dividend to €0,52 per share (from €0,40 last year). This is a nice raise, which adds € 6 to my annual dividend income.
• Cisco (CSCO) raised its quarterly dividend by a rather small amount, just like Walmart (WMT).
• Finally Coca-Cola raised its dividend by almost 5%. This is a solid raise, given the raises in the last years.

All of these raises combined will deliver an annual income boost of more than € 50 in 2022 (and hopefully more after 2022!). In total I have received raises which will boost my annual dividend income by over € 100. That's a solid start of the year!

Recent buy (Unilever) and recent sell (Accell)

Earlier this week I had two transactions in my portfolio. I sold one stock in my portfolio, and with the proceeds I purchased additional shares in a company I already own. I still have some cash laying around, so I guess you can expect another 'Recent buy' article in two weeks or so.

Let's begin with my recent sell: Accell Group. This is actually the first company in my dividend portfolio. I purchased these shares back in 2011. Due to dividend reinvestments in the first years I accumulated 29 shares for an average price of just over € 16. A few weeks ago the news came that a consortium led by buyout firm KKR had agreed a takeover of Accell Group. Their cash-offer of € 58 per share represented a premium of 26% over Accell's closing price on January 21st. The offer is due to launch in the second quarter after approvals, and to close in the third quarter. Since the share price immediately increased to the take over price of €58 I decided to not wait around and sell my shares. With this investment I earned a rate of return of about 15% per year. Too bad my original investment was just over € 400, else I would have earned some serious money! Accell decided to postpone the dividend during the COVID-19 crisis, so this sell does not affect my annual dividend income going forward.

With the proceeds I decided to add to my existing position in Unilever (ticker: UNA). I purchased an additional 24 shares in the company.  I purchased my first 37 shares back in 2013 when the dividend yield was around 3,6%. In the last few years I added shares four more times with dividend yields between 3,0% and 3,6%. Currently the forward dividend is 3,7% so in terms of valuation this is a good time to add to my position. Unilever is working through some problems but I believe in the future prosperity of this company. With this addition I am almost able to take advantage of the automatic dividend reinvestment option through my broker. 

This purchase adds € 40 to my annual dividend income, which stands at € 3.050! That's another milestone right there. Let's see how fast we can reach a new milestone, let's say € 3.600 (€ 300,- per month).

Recent buy: TROW

Last week I added to my existing position in T. Rowe Price (ticker: TROW). I purchased an additional 8 shares in the company.  I purchased my first 20 shares back in 2016 when the dividend yield was around 2,9%. Last year I added to my position with an extra 10 shares.

TROW was priced at $220 back in November last year. Currently the price has declined to just under $150. This is a price drop of more than 30%. The P/E-ratio is around 12x. Last year I noted that 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. The latest dividend increases were 18% in 2020 and 20% in 2021. I have nothing to complain with these kind of annual raises. The payout ratio is 34% and is still really solid.

My forward dividend annual income increases with about € 30 with this purchase.

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,

 

Dividend report: January 2022

January is over! Already the first month of a new year. The last weeks were quite hectic in our household. COVID finally reached our family. That required some serious flexibility on our part but I guess we managed it for the most part. Let's hope February is quiet on that front.

January was also a hectic month with regards to the stock market. There were some serious up- and down days but I am not worried about that. In the end it's all about the dividend income. Since I am not a seller of stocks at this point in my life, I don't really care about lower prices.

In my portfolio I had a few big losers, like TROW (-20%), OHI (-10%), INTC (-10%) but I also had some big winners, mainly in the energy sector: Shell (+17%), XOM (+22%) but also Accell (+21%) which was boosted by a planned take-over. All things considered my portfolio hardly moved.

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 almost € 900 after tax. Six companies paid me dividends. The dividend income increased by almost 60% compared to last year. This increase is mainly the result of additional purchases in Brink (my employer) and MRK (here and here). Dividend growth for my other holdings are rather muted.

In the graph below I've showed my cumulative dividend income for 2022 (which obviously is just the first month of the year). But the start is great! What is awesome to see is that the income from last month is higher than my annual income till 2017. I've take some serious steps.

Currently my annual dividend income is around € 2.970. I still have to report some recent dividend raises and an addition to my portfolio. A hint: it is one of my losers from last month.

How was your January? What is your watchlist?