It’s relatively cold outside and TeliaSonera AB is trading near 5 euros per share – it must be summer. So instead of buying huge loads of sunscreen, I went ahead and bought additional 200 shares for 5,13 EUR per share. That could be called averaging down (average price being 5,16 EUR per share before this) on a microscopic scale.
Outlook is still the same. Expecting a dividend of at least 3 SEK for FY2015 which would be roughly 0,32 EUR per share or yield of 6,2%.
Quite normal quarter for the portfolio but not so much for the economy in general. Situation in Greece could be described as interesting. It remains to be seen what’s the actual impact for euro zone. Personally I consider this as the opening act for the political tensions raising from huge debt loads . These are the reasons largely explaining my USD heavy portfolio build up. As I expected to report in euros for the years to come, it will be interesting to see how all this plays out. During the past weeks most of the stocks in Europe have been hit, at least modestly, but there was very little drama for my portfolio. The train is still rolling. It’s worth to mention that I had two spin-offs in my portfolio as South32 Ltd. (BHP) and Baxalta (Baxter International Inc.) entered the portfolio.
Passive income during Q2 (before taxes) was as follows:
Another month, another purchase. Fortum has been down lately and since it dropped down close to my current average price, I decided to buy additional 60 shares for 16,90 EUR per share. There’s a lot to like in the company itself but it carries also a significant political risk. They are currently sitting on a large pile of cash which should guarantee not only a nice dividend for the years to come but also growth drivers. If that plays out as expected, they should be in a better position in 5+ years scale. Meanwhile I’ll just enjoy the dividends and hope that political risk doesn’t manifest itself in the form of bad growth investments or too high payout ratio.
More info: Fortum investor relations
I really wasn’t planning to add on REIT positions until the interest rate hit would hammer them down but since my second favourite REIT position has been hit so hard lately, I decided to add on Omega Healthcare Investors (OHI). I bought 30 shares for 35,50 USD per share. At the time of writing this it was kind of a DGI community favourite – for example Dividend Mantra explained the quality aspects of the company really well.
This was rather unplanned action but since the monthly cash machine was dropping despite a solid quarterly report, I decided to add on an existing position on Realty Income Corporation (NYSE:O). This time around I averaged up slightly with a purchase of 22 shares for 46,88 USD per share.
Some information about the latest quarterly report can be found from here: http://seekingalpha.com/article/3120706-an-impressive-quarter-from-the-monthly-dividend-company
Dividends received during the first quarter of fiscal year 2015 (taxes not included):
Market value increased by 14,90%. US dividends decreased marginally from previous quarter (244,30 USD) mainly due to inactivity during Q4 and because of the temporarily suspended dividend by NASDAQ:ARCP. Latter one I expect to be restored during Q2/2015.
It’s been a while since the last time I went shopping in NYSE. It was finally possible due to minor changes in EUR/USD exchange rate and USD income from existing positions. As planned I averaged down on Baxter International and bought 15 shares for 68,38 USD per share. Key factor here is the upcoming Baxalta spin-off for which some information can be found from here.
Company profile from http://www.baxter.com/:
Baxter International Inc. (NYSE:BAX), through its subsidiaries, develops, manufactures and markets products that save and sustain the lives of people with hemophilia, immune disorders, infectious diseases, kidney disease, trauma, and other chronic and acute medical conditions. As a global, diversified healthcare company, Baxter applies a unique combination of expertise in medical devices, pharmaceuticals and biotechnology to create products that advance patient care worldwide. Baxter had 2014 sales of $16.7 billion and has approximately 65,500 employees.
Plans are meant to be changed. I couldn’t justify converting euros to dollars with the current exchange rate. Otherwise I would have started with Baxter International but in the current situation I’ll wait a while to build up dollar position from dividends received from existing positions. Instead I opened a new position on Telenor by buying 55 shares for 152,70 NOK per share. This is my second Norwegian holding. I’m not super excited about the valuation, this more like a good enough position in the current situation. I might double the position during this month and after that focus on finding something from the euro zone. Right now I’m considering to play the QE scenario by loading up on iShares STOXX Europe Select Dividend 30 UCITS ETF for two to four months.
Summary from http://www.telenor.com/investors/company-facts/:
Telenor Group:
186 million mobile subscriptions
One of the top 500 global companies by market value *
Revenues 2014: NOK 107 billion
Workforce: employees (Q4 2014)
Listed on the Oslo Stock Exchange
Telenor Group has mobile operations in 13 markets and in additionally 14 markets through our ownership in VimpelCom Ltd.*Financial Times Global 500, 2012
Bull market just keeps on going and it’s very difficult to see a major shift happening very soon. It seems that the most likely outcome of the QE operations is a significant bubble which will continue to grow for couple of years. Volatility might increase in near term but it’s very difficult to imagine all the loose money not going to stocks especially in Europe. All this makes it a bit difficult to come up with a solid shopping list for the next 6 months or so. In general I’d need to consider or address the following issues:
Having said that, the expected shopping list and order to go as follows: