Maintenance purchase for secondary portfolio at Nordea as they had the monthly campaign day with reduced fees. I bought additional 20 shares of Kemira for 13.20 EUR per share. Slow and steady nibbling until valuation is low enough to buy bigger chunks.
Recent Sell: GEO Group Inc.
End of the year cleanups are here. I sold the small GEO Group position of 160 shares for 7.15 USD per share. Elimination of REIT status and dividend plus the overall extremely poor performance lead to this decision. Sure, one could consider the stock to be undervalued in long term but it does not pass the criteria to be included in my speculative portfolio. I rule this as a miss, take the loss and move on. Decision I should have done a long time ago. I might reinvest the money in Omega Healthcare REIT which is also a high yield and elevated risk position.
Recent Buy: Orion Office REIT
Realty Income completed the acquisition of VEREIT and subsequent spin-off of office properties as independent REIT. As result I received 28 shares of the new Orion Office REIT. Since Nordnet had special pricing for thanksgiving, I bought additional 22 shares for 18.04 USD per share in order to have total amount of round 50 shares. This is still a small position but as such reasonable initial position size and allowed me to invest existing dollars from dividends without fees.
Recent Buy: Lockheed Martin Corporation
Lockheed Martin reported third quarter results and stock declined about 10 percent. Guidance was soft and all that but long term thesis is still there at least for me. Conflicts will never go out of fashion and space will be a key sector in the long term. Therefore I added 5 shares for 336,90 USD per share. Personally I consider current valuation as decent given the overall market and political environment. Not exceptionally cheap but decent. This does not really reduce my cash position but acts as a monthly maintenance purchase for dividend portfolio.
Q3/2021 Results
Another boring quarter has passed and much like previous ones, this one quite passive as well. Only minor maintenance purchases were made in Kemira Oyj and one slightly bigger one with an entry into AbbVie Inc. Decent turnaround in portfolio continued and settled into sideways movement towards the end. Dividend income before taxes was 1436.08 EUR during the quarter.
Another positive development was ECB’s approval for Nordea to pay dividends that were on hold for quite a long time. Sampo as my largest position will receive quite a respectable amount of these while it is still working on the sale of whole Nordea position. Both are also planning on purchasing their own shares. Expectation is that Sampo will distribute extra dividend in addition to those purchases. Expectations for Q4/2021 and H1/2022 are quite positive in this sense. Otherwise I’m still in waiting pattern and plan to make only moderate purchases until there’s a significant correction taking place. Increased exposure for pharmaceuticals, defence, water and chemicals are likely targets of those purchases.
Recent Buy: Kemira Oyj
Groundhog day – Investor’s Edition. Bought additional 10 shares of Kemira for 13,34 EUR per share as a maintenance purchase. These euros were essentially coming from CapMan’s freshly paid dividend (second part). Still nibbling away until price is more favourable. Kemira is quite solid and boring company with partial focus on water sector which I’ve tried to find entry into for quite some time now.
Recent Buy: Kemira Oyj
Mandatory maintenance purchase for the secondary portfolio. I’m not a huge fan of Kemira‘s current valuation but started to nibble on it anyway. Just a tiny purchase of 10 shares bought for 14,26 EUR per share. I’ll probably keep in nibbling on it with such tiny pieces until valuation is more favourable. Company itself is quite solid and boring so in that sense there’s not much to complain. Never managed to pull the trigger when it was trading our 10 EUR per share.
Recent Buy: AbbVie Inc.
It has been really hard finding anything to buy. In an attempt to increase my pharma exposure I bought an entry position in AbbVie Inc. in the from of 20 shares bought for 107,99 USD per share. Let’s consider this as a maintenance purchase while waiting for better market conditions. Good enough company in good enough position with good enough valuation. Good enough in these markets.
Q2/2021 & H1/2021 Results
Second quarter and first half of the year was still very much aftermath of the pandemic. Stocks have soared as the monetary policies have been adjusted to support economic recovery. Chances are that those monetary policies are too loose and late in general but size of the balloon remains to be seen. It’s hard to consider current stock valuations as a whole representative of the underlying economy. Therefore it has been very difficult to find anything to buy. As a compromise I’ve tried to nibble on existing positions with smaller maintenance purchases.
Pre tax dividend income during second quarter was 2684.31 EUR and 3874.46 EUR during first half. Quite solid rebound in progress from last year. It remains to be seen if finance sector is allowed pending dividends this year. Nordea’s dividends for two years are pending on ECB permission. Assuming that permission is granted during Q3 and dividends are paid during Q4 at latest, remaining dividend rebound would then be mainly about few REIT dividends.
Otherwise there were few major news except for the ever ongoing pandemic. Still few will have impact on my portfolio. AT&T will spin off Warner Media. It’s almost guaranteed that dividend will be cut as a whole. I’m a bit torn with this but probably will hold on and see how it plays out eventually. Most annoying thing with these spin offs is the eventual impact on taxation as handling will be a bit more complicated. Second news was Realty Income‘s plan to buy VEREIT. Owning both I don’t really mind but going forward this is positive news.
Plan for the next two quarters? Probably wait and see is the way to go. I’ll do small maintenance purchases and pretty much try to reinvest received dividends. Should there be major correction, I have plenty of cash waiting to be deployed.
Recent Buy: Pfizer Inc
Fine. Couldn’t really find anything to buy but had eye on Pfizer for few months so I bought 50 shares for 38.50 USD per share. Previous exit wasn’t exactly a good move if possible problems with spin off taxation are excluded. Solid company and solid operating environment with the ever ongoing COVID-19 situation, increased vaccine production capacity and all the other product lines. I’ll probably add on this gradually and also look into entering Abbvie position as well since this is a sector I’d like to increase my exposure in.