Last weeks have been intense in various markets. FED increased rates yesterday and sent stock lower. Same trend continued today I we are seeing unusually high yields here and there. I decided to deploy some money and subsequently returned to the exposure level I had before selling the Norwegian dividend holdings. AT&T is an existing core holding covering US telecom sector and also streaming & content. Current valuation comes with an usually high yield and recent raise as a cherry on top. Philip Morris is bit more problematic. Original thesis was the exposure to lucrative vice business and possibilities for weed additions. We haven’t seen the latter yet but maybe we’ll get there. There are some possibilities with iQOS and co-operation with other companies in the sector. At least the business should be very recession resistant and comes with unusually high yield. Apple on the other hand is a core holding covering technology, services and especially high margin consumer products. The stock has dropped lately due to trade war tensions, slowing sales and patent disputes. I chose to take all that as a short term noise – long term case is still there.
- bought 50 shares of AT&T for 28,50 USD per share
- bought 20 shares of Philip Morris Inc. for 69,80 USD per share
- bought 10 shares of Apple Inc. for 159,99 USD per share
Apple has been dropping lately. Sure they might not grow ever again, sure the iPhone market could be fully saturated and all that. Let’s see in a decade or so. I bought additional 10 shares for 169,51 USD per share. They must hate this down trend with the buybacks and all…
Everything has been trading in red lately. Everything includes Nordea Bank among others. Sure there are risks everywhere at the moment but I decided to buy additional 100 shares for 7,683 EUR per share. I still expect a significant dividend increase next spring which would bring the yield close to 10%. Re-location to Finland is probably affecting the valuation as well during the ongoing and next quarter as indexes are re-balanced.
Planned repurchase of the recently sold NEL shares with 700 shares bought for 4,28 NOK per share. Position is now 5000 shares – half of the planned size – but filling up the position might take some time. Current market sentiment is such that we are likely to see even extreme volatility. Therefore it’s possible that I’ll also end up deploying significant sums of money in the primary dividend portfolio. US market is down today so it will be interesting to see what happens tomorrow in Helsinki exchange as it’s closed today due to independence day celebrations.
One more to replace the Telenor position: bought 40 shares of AT&T for 29,60 USD per share. All these changes lowered the debt ratio in my portfolio. Therefore it’s just fitting to add on a highly leveraged company.
As I sold all my NEL shares in the primary portfolio, I bought back 1300 shares in the secondary growth portfolio for 4,47 NOK per share. This brings the total count to 4300 shares while the target is 10000 shares. I’ll keep en eye on the market situation just in case there’s a major correction which would allow me to buy back the remaining 5700 shares with simnifically lower prices. If not, I’ll buy back the shares gradually in smaller patches.
I also bought additional 230 shares of Telia Company for 40,59 SEK per share. I still like the valuation and the defensive nature of their business. This also offsets partially the now long gone Telenor position.
Norwegian tax authorities made me do it. I sold all my Norwegian holdings in the primary dividend portfolio. It’s possible that I would have made a bit more money by waiting and selling closer to the ex-dividend date. However I considered the current market sentiment to be so volatile that it was better to make this move now.
- sold 7000 shares of NEL for 4,424 NOK per share
- sold 1500 shares of Europris for 21,85 NOK per share
- sold 360 shares of Telenor for 163,50 NOK per share
How do you like ’em apples? I added to both of my Apple holdings today. This was partially preparation for the somewhat planned exit on Norwegian positions. Apple Inc. has been on the news lately as they have apparently cut down the iPhone orders from key suppliers. This may very well be true but I have some thoughts how this will eventually play out. Don’t know about the short term but long term fundamentals are there. For me the valuation appears to be quite reasonable so I bought additional 10 shares for 185,88 USD per share.
Apple Hospitality on the other hand is very much cyclical REIT which has been trading lower for quite some time. This a position that I consider to be full for the time being. However I probably will be buying this one on the way down once the economical cycle in US truly turns. In the meantime it should provide nice dividend stream while waiting for the tide to turn. I bought additional 200 shares for 15,63 USD per share.
Transferring NEL from primary portfolio to secondary portfolio proceeded with a purchase of 1450 shares for 4,65 NOK per share. This brings the total share count back to the original 10000 shares which is also my target level. This planned transfer was something that I could do in tax efficient manner but things got a bit complicated with Norwegian tax authorities. They are planning to show some disrespect for the tax treaty between Norway and Finland with less than ideal handling of dividend taxes for foreign individuals. This means that I’ll likely be forced to exit all my Norwegian positions as the burden of claiming back taxes is too big and potentially too expensive if the process requires costly documentation. Selling all my positions will (with current valuations) trigger some taxes as I don’t have enough losses for all the profits. I suppose that’s a positive problem to have but it might also mean that I’d have to prioritise dividend paying Norwegian positions over NEL and postpone this transfer operation. I’ll have to some calculations before making up my mind.
Sampo was on the red today so I decided to buy additional 25 shares for 40,49 EUR per share. There’s really nothing new to say about Sampo. Solid company with some hopefully short term problems with Nordea. I also sold 3000 NEL shares for 4,568 NOK per share from the primary portfolio. NEL was up today so I decided to lock in some gains in the primary portfolio. I’ll slowly transfer NEL shares to secondary growth portfolio hosted in Nordea and try to keep the total share count close to the original ten thousand shares.