Thursday, February 17, 2022

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).

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