In January stock markets rose higher until we got to the end of the month, that was when everything turned red. Mostly red and then we had a few companies who saw a huge rally with crazy gains. Thanks to markets gaining in value the gap to my short term target is now closing in faster then expected, approximately 14 000€ to go and I will achieve the short term target (check the targets on Goals page).
Shortly a summary of stock market indexes, S&P 500 and Nasdaq Composite has a small gain YTD basis, while FTSE 100 has dropped a littel since first trading day. OMX Nordic 40 has declined a bit this year. My portfolio has also gone a bit down in market value compared to invested amount, as you can see in the excel file, link to portfolio page.
Portfolio Changes, mainly buys and one small sell
AT&T (ticker T), bought 8 shares during January, average purchase price in USD fell from 31,60 to 31,38. In my opinion AT&T is a good company and currently a lower risk company then before the acquisition of TimeWarner. Warner media has diversified the company and that could be a reason for the modest price. Sometimes conglomerates are priced lower than segment by them self. This seems to be the case with AT&T, which is ok for me as I can slowly increase my position at a good price until it has risen beyond my purchase point of $33 a share.
Bayer AG (ticker BAYN) was increased by 2 shares and the weighted average purchase price fell from 64,65€ to 63,69€. Still Bayer is reflecting the damage from Monsanto acquisition and the huge write down they made. Here the management should be roasted for not doing their job, due diligence is a basic M&A necessity and they know it. Increased my position as they have a lot of consumer products that are daily used and will keep the cash flowing in.
BCE Inc. (ticker BCE) was increased by 3 shares and the price paid increased a bit from 54,71 CAD to 54,82 CAD. The price in CAD increased yet remained the same in euros due to stronger euro currency. As before usage of data and phones will remain steady so why not utilize it and get the nice quarterly dividend. Currently BCEs gross dividend yield is 6,139%, note that they have a lot of stocks outstanding and preferred stocks.
Bought 2 shares in Beiersdorf AG (ticker BEI) as the market was a bit nervous and reduced the purchase price from 95,20€ to 92,84€. Beiersdorf is mainly a family owned company and has a few very strong brands, Nivea and Labello, they pay a small dividend every year and might increase it in the future as they have a decent amount of cash.
Canadian Utilities (ticker CU) was increased by 4 shares and price paid decreased from 32,36CAD to 32,31 CAD. The regulated business is stable and they seem to divest fossil fuels which might make it a green company. They acquired some natural gas pipelines which will bring a steady cash flow. Maybe Canadian Utilities could be a potential green utility company in the future.
Old Republic International (ticker ORI), bought 3 shares to total 70 shares at the moment and price paid per share increased from 17,43 USD to 17,46 USD. Old Republic Int paid an extra dividend in January of $1 pet share and based on the Board of Directors statement about the dividend it does not hurt nor have an negative impact on the company. Based on the information supplied in the SEC statement it does look like they have only concluded that there are not that many good options for them to allocate capital and therefore the only reasonable option to do is to pay it back to owners. This is when you know a good management is in place.
PPL Corp (ticker PPL), bought 2 shares and the price paid per share increased from 26,09 USD to 26,68 USD. The purchase price increased in USD, yet remained almost the same in euros thanks to exchange rate support.
Decreased my position in Sampo by net 3 shares, first bought 2 shares and then sold 5 shares. Weighted purchase price changed from 34,18. to 35,25€. This was a small mistake by me, was supposed to buy five shares and not sell, yet pushed the wrong button. Thesek kind of mistakes happen, hopefully not that often any more.
Bought more Telia shares, an increase from 1 216 to 1 250 shares, paid price remained the same at 3,79€. Telias Q4 report was published and it was a big loss, yet cash-flow was good. The bad result was associated to its operations in Finland and a revaluation of the business value. Therefore a write down. Not worried about it, as i earlier wrote Telia pays dividends based on cash-flow, not earnings. Link to post.
Bought iShares MSCI Eastern Europe Capped UCITS ETF to my portfolio, 16 shares and the price ended at 21,73€/ share. The purchase price ended a bit high due to transaction costs. Bought the ETF to my portfolio as it is having a modest valuation. P/E- ratio of 8,79, P/B- ratio 1,14 and distribution yield of 3,2 %. There is a bit of risk associated with this ETF as it has large exposure to Russia, the other East-Europe countries I find interesting as they have valuable companies from a daily usage perspective. The Russian companies are of huge risk if any additional sanctions are imposed on Russia by EU or U.S.A.
Dividends in January
Received 78,19€ in gross dividends and 68,70€ in net dividends (what came to my bank account). Compared to December I received less in dividends, if we remove Telias on-off dividend in December then we would land at about the same level. Exceptional was Old Republics extra dividend of $1 per share in January of 46,83€. Without that dividends would have been really small in January.
If we look at the composition of my portfolio it consists of companies heavily paying dividend in March, June, September and December with the exception of Sampo (usually in May) and Telia (April and October). AT&T pays dividends in February, May, August and November which has a good positive impact on cash-flow. AT&T dividends in February will not be respective to the 88 shareholding I have at the moment as a few shares were bought after ex-dividend date (the day when you no longer will receive the dividend).
To increase my dividends this year I will most likely expand the portfolio to a few more companies and increase positions.
Looking forward to a good dividend year 2021, hopefully European banks are allowed to pay dividend to owners. Let 2021 be a good dividend year.
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