Investments

Planned re-investment of remaining cash from recent Lockheed Martin sale, received dividends and trades with Iris Energy. I bought additional 120 shares of XACT Nordic High Dividend Low Volatility UCITS ETF for 151,24 SEK per share. This together with initial placeholder position of 40 shares forms the actual entry position in this ETF. I expected to add on this position consistently over time and consider this as a proxy especially for Danish and Norwegian high yielders. As a bonus this increases my diversification in general and exposure to more passive investment vehicles.

Older stop loss kicked in and executed a sale of 10 Lockheed Martin shares for 449,3529 USD per share. These were the extra 10 shares I bought for 424,34 USD per share back in March when I traded out the original position of 30 shares due to the turmoil caused by Trump’s administration. Seems decent but with currency impact this was pretty much break even. I deployed most of this money and bought additional 100 shares of Franklin European Quality Dividend ETF for 32,44 EUR per share. This was mostly risk adjustment and move to increase non-US exposure via better diversified position. Rest of the money will be deployed later this month along with dividends received during the month.

I’m starting to repeat myself but I bought additional 100 shares of Terveystalo Oyj for 10,60 EUR per share with the very same thesis: dividend increases for next few years seem inevitable, stock might be reclassified and foreign ownership will likely keep on increasing. Considering all this I expect to get decent yield together with some share price appreciation. I might still buy additional 100 shares but then I would consider the position full no matter what happens.

Few additions still before autumn truly is here. I added 50 more shares of Terveystalo Oyj for 10,72 EUR per share. This brings total to even 300 shares. I might still add some but at most 200 shares or about 500 in total. Reasoning has not changed from the previous purchases. In addition to this I made a tiny entry into XACT Nordic High Dividend Low Volatility ETF which will be the third ETF in the newly laid out ETF plan. This is there to increase exposure especially in norwegian high yielders (ETF instead of direct ownership to simplify things due to issues in taxation). This is just the initial entry in the form of 10 shares bought for 155,48 SEK per share. Position will likely be built up in bigger chunks.

Few additions to before the month comes to an end. Main investment was 54 shares of Franklin European Quality Dividend ETF bought for 33,18 EUR per share. This was mainly funded by the recent Investor AB exit. In addition to that I made a small montly type of contribution in iShares NASDAQ 100 EUR Hedged ETF in the form of 10 additional shares bought for 13,88 EUR per share. That would be the baseline for monthly contribution since valuations are definitely on the high side. Third item was additional 50 shares of Terveystalo Oyj bought for 10,80 EUR per share.

Quite a basic set of purchases. ETFs are intended to slowly build a bit more diversified and currency hedged portfolio. Terveystalo position is something that I’ll like keep on increasing during the rest of the year. I see dividend increases in the future so chances are that decent dividend income can be built now before valuation catches up.

I sold my tiny Investor AB position which consisted of mere 80 shares. This decision was driven by the fact that position was so small, Investor AB is chronically expensive (within the typical range which is not likely to change anytime soon) except for short periods of time during market downturns and dividend yield is not exactly on the high side. I sold my shares for 295,20 SEK per share. Recorded a profit of 801 EUR from gains of 61,10% . During the ownership I received 1116 SEK as dividends (before taxes). These funds will likely be diverted to the new Franklin European Quality Dividend ETF position together with shortly incoming dividends and some additional funds from cash reserves. And, once the next significant market correction arrives, Investor AB is prime candidate for short to mid term entry to fund rotation to higher yielding positions later on if bigger long position doesn’t feel right at the time.

As planned I now have new ETF plan in place. Major part of it is Franklin European Quality Dividend UCITS ETF (FLXD) which I’ll be using to diversify more into European companies. This has couple of advantages and one obvious disadvantage. This allows easy diversification into companies domiciled in problematic countries when taxes are taken into account (tax agreement not followed, difficult to get refunds from over charged taxes). Furthermore this type of diversification reduces currency risks going forward. Obvious disadvantage is slightly higher effective tax rate when compared to dividends from countries that actually follow tax agreements. I plan to add consistently into this ETF mainly by redirecting dividend income – and especially USD dividend income – into this ETF in trenches of about 1500 EUR. Second ETF is iShares NASDAQ 100 UCITS ETF EUR HEDGED for which I’ll make tiny consistent contributions for now since valuations are at all time high levels. Should we get significant correction, I plan to make larger indiviual contributions during those times. Like the name suggests, this ETF is EUR hedged to limit the currency risk going forward. This ETF will act as a monthly savings target and will eventually be transferred into my son’s portfolio (hence the non distributing selection).

In addition to these I’ve played around with my small IREN and Lemonade positions just for the kicks. I don’t usually trade because I end up with unexpected positions. This time it’s only partially true as I’ve ended up with 100 IREN shares (double the original position) and 0 Lemonade shares. Plan is to buy some Lemonade either through additional trades or fresh capital. Remains to be seen but considering the recent volatility and valuations, I see IREN as better short to mid term option so might be sitting without Lemonade for a while.

Second Terveystalo Plc patch of 100 shares bought for 10,62 EUR per share. Nothing special here as recent drop does not appear to continue further down, instead I see some weak indicators for leveling out and starting slowly to correct back to pre results levels. Might buy additional two similar patches during Q3 and Q4 but it remains to be seen. Might also just nibble smaller patches for longer as I’m currently doing with Lassila & Tikanoja.

Same old story about a maintenance purchace and Lassila & Tikanoja. Nothing special going on but bought additional 25 shares for 9,50 EUR per share. Total share count now sits at 300 shares so might still add additional 100-200 shares. I suppose this is some kind of defensive reaction and not at all fashionable way to spend money.

Slightly unplanned but Terveystalo dropped today due to slightly missed expectations and I decided to buy initial 100 shares for 10,70 EUR per share. I have lately favoured healthcare sector and while private healthcare providers in Nordics are not my absolute favourites, I decided to take a bite while motivated by reasonable valuation, healthy dividend and potential upside from classification changes. It remains to be seen if I will build full position from this initial entry. Possibly a half position of roughly 400-500 shares if valuation remains favourable.

See: https://news.alertir.com/terveystalo/en/node/1389