Dwell+Done

Buy the dip shopping spree continues. Nordea was on my published shopping list so it was natural candidate to follow TeliaSonera AB. On October 15th I bought 100 shares for 9,225 EUR per share. Previous dividend was 0.43 EUR per share which would increase my annual dividend income by 43 EUR.

Company profile from http://www.reuters.com/finance/stocks/companyProfile?symbol=NDA.ST

Nordea Bank AB (the Bank) is a Sweden-based bank engaged in corporate merchant banking, as well as retail banking and private banking. The Bank reports three main business areas, namely Retail Banking, Wholesale Banking and Wealth Management. Retail Banking offers a range of banking products and services to household and corporate customers in the Nordic markets, as well as in Poland and the Baltic countries. Wholesale Banking provides banking and other financial solutions to large Nordic and international corporate, institutional and public companies. Wealth Management provides investment, savings and risk management products, manages customers’ assets and advises individuals, as well as institutional investors on their financial situation. In April 2014, the Company sold Nordea Polish bank, life and finance businesses to PKO Bank Polski. In July 2014, it completed divestment of its shares in Nets Holding.

General Electric wasn’t on the published list but it happened to drop below 24 USD on the same day so I bought 50 shares for 23,96 USD per share. Quarterly paid dividend has been 0,22 USD per share which would increase my annual dividend income by 44 USD. GE really needs no introduction but one can be found from here: http://www.reuters.com/finance/stocks/companyProfile?symbol=GE.N

After some consideration I decided to postpone buying Allianz which was the first item on my shopping list. Few things contributed on this decision. First of all the tax refunding issues would make such investment a bit less ideal candidate. Secondly, Munich Re might be better candidate. Germany will just have to wait. I might pick something else from the european insurance sector.

Instead I moved on with the list and on October 9th bought 200 shares of TeliaSonera AB for 5,2050 EUR per share. Decent dividend expected for the next couple of years and most likely decades to follow. Very stable stock which can be a positive or negative thing depending on ones outlook. Previous dividend was 3.00 SEK and the company has specifically communicated that it shall target “to distribute an annual dividend of at least SEK 3 per share for the fiscal years 2014 and 2015″ (source).

Company profile from http://www.teliasonera.com/en/about-us/teliasonera-in-brief/:

TeliaSonera provides network access and telecommunication services that help people and companies communicate in an easy, efficient and environmentally friendly way.

International strength combined with local excellence is what makes us truly unique – and provides a world class customer experience, all the way from the Nordic countries to Nepal. This combination has brought groundbreaking 4G, a world class fibre network, and introduced 3G at Mount Everest.

We offer our services in the Nordic and Baltic countries, the emerging markets of Eurasia, including Russia and Turkey, and in Spain.

In May 2011 we united ourselves under one common symbol and identity. When you see this symbol, you will know that you are not only dealing with a local telecom operator – you are plugging into the world of TeliaSonera, a world filled with new and exciting possibilities

Founded in the 1850’s we are pioneers of the telecom industry, one of the inventors of mobile communications and founders of GSM. We are committed to continue to drive the information society and to constantly take our customers one step further. We have evolved from local operators into Europe’s fifth largest – in less than 20 years.

True to our heritage as telecommunication pioneers we continue to invest in high quality networks to meet the demand for bandwidth. Together with our partners and suppliers we will ensure that our customers have access to the best solutions available now and in the future. We will continue to focus relentlessly on ensuring a superior customer experience.

TeliaSonera. International strength combined with local excellence. At your service.

As anticipated in the previous shopping list update, Omega Healthcare Investors, Inc was the purchase of the month this time around. On September 19th I bought 30 shares for 34,64 USD per share. Current quarterly dividend being 0.51USD per share, the projected impact on annual income is 61,20 USD before taxes.

Company profile from http://www.omegahealthcare.com/CorporateProfile.aspx?iid=103065:

Omega Healthcare Investors, Inc. (NYSE:OHI) is a Real Estate Investment Trust (“REIT”) providing financing and capital to the long-term healthcare industry with a particular focus on skilled nursing facilities located in the United States.

At June 30, 2014, the Company owned or held mortgages on 563 skilled nursing facilities, assisted living facilities and other specialty hospitals with approximately 63,733 licensed beds (61,353 available beds) located in 37 states and operated by 49 third-party healthcare operating companies.

As a source of capital to the healthcare industry, Omega continually evaluates the opportunities, trends and challenges affecting the industry. Our goal is to identify long-term investments in quality healthcare properties with outstanding operators that provide the most favorable risk/reward ratio to our investors.

Stock information: http://www.omegahealthcare.com/stockinfo.aspx?iid=103065

 

While waiting for the stock market correction everyone is talking about, I’m considering the following stocks for my next purchases. Expected order is roughly as follows:

• Omega Healthcare Investors
• Allianz
• Nordea
• Telia-Sonera
• Aflac
• Deere

Bubbling under:

• Adidas
• Travelers Companies Inc.

OHI has been on my watch list for a while now so it is the most obvious pick. Aflac and Deere are existing positions but both are very likely to present attractive opportunities during the next 6-24 months. I’m not in hurry to add on those positions but instead will start on adding positions in european companies before the spring payouts. This is pretty much the preliminary shopping list for the next six months. Execution depends on the moods of Mr. Market.

I’ve had couple of companies on my watch list and lately few of those have dropped down to really tempting levels. I was considering adding on to existing positions on DE and AFL but in the name of diversification decided to pull the trigger on Lockheed Martin Company. Defense sector was missing from my portfolio and when it comes to defense, LMT can deliver. I wouldn’t call it exceptionally cheap but today’s slight drop was enough for me and I bought 9 shares for 163,10 USD per share as an initial position.

Forward P/E is below 14, current yield is about 3.2o% and payout ratio about 61%. Fits very nicely to my current strategy.

Links: http://finance.yahoo.com/q?s=LMT

In attempt to streamline my current portfolio I decided to sell all the exchange traded funds I had. The position on those was not significant to begin with and I feel that limited set of dividend oriented stocks is the way to go for now. For this operation I didn’t inject new money but reallocated the funds received.

First I opened a new position on Deere & Co and bought 20 shares for 87,33 USD per share. This was high on my watch list and this reallocation allowed me to open this position sooner than expected. DE seems fairly valued as the P/E is around 10 and it yields about 2.60.

Rest of the money went to strengthen an existing position on Realty Income Corporation. The key factor here was the need to focus on the short term income due to tax reasons as described before so I bought 25 shares for 44,78 USD per share.

Links:  http://seekingalpha.com/symbol/DE, http://seekingalpha.com/symbol/O

Current watch list: LMT and weapons & defense sector in general, OHI (REIT, exposure to the healthcare sector), AFL (reasonably priced company and position I plan to add on)

JNJ dropped a bit after posting their latest earnings report. The report itself was actually positive so I decided to use this rare opportunity to add on existing position and bought 15 shares for 100,73 USD per share. This will add 42 USD to my annual income as dividends before taxes. No specific reasoning was needed for this purchase as this is one of the best companies in the world to own a piece of. Personally I wouldn’t consider this price as super cheap but it is acceptable in the current market. I’ll consider adding on this position again in 98-101 USD range but I’m certainly going to invest as much as possible if it drops below 95 USD.

Current watch list: DE (new), AFL (existing), JNJ (existing), LMT (new but a bit far fetched at the moment)

Links: http://www.investor.jnj.com/divhistory.cfm, http://seekingalpha.com/symbol/JNJ

As much as I dislike buying something when everyone else is buying exactly the same thing, I decided to hop on to the bandwagon and bought 20 shares of Baxter International Inc. for 73,96 USD per share. All the relevant information can be found from the link below. It’s quite obvious that the expected spin-off for 2015 is the key thing here for most of the DGI investors who have had their eyes on this lately.

Recent buy analysis by dividendmatra.com: http://www.dividendmantra.com/2014/06/recent-buy-7/