Dividend Income Update February 2018

The second month of 2018 is now history and here’s the summary of my dividend income for february 2018

  • Total Dividend Income for February $164.57 or 1291 NOK
  • Last years dividend income in February was $32 or 256 NOK
  • Quadrupled the dividend income this month too.
  • 10 companies sent me a check
  • Dividend Portfolio action: Sold Omega Healthcare Investors and Storebrand. Bought Enbridge and Investor.
  • Fund portfolio action: Other than the regular savings, I added a bit more to KLP emerging markets index

Before we move ahead with the dividend income, I want to share some cool things which has happened recently. Last week, I was talking around on Wall Street (visiting NY) and randomly look up on a huge blue poster. Guess what! It was the announcement that Welltower, one of my core holdings, changed their ticket from HCN to WELL. I don’t think it’s normal for the average tourist to see one of their core stocks on the NYSE building, but New York has been very kind to Stockles.

Also, I was able to do research on the american market. Often, I could walk around and see 3-5 companies in my portfolio on one street. More interestingly, I could try out the Deli stores (which is one of the core growth prospects for my core holding Hormel Foods Corp). Honestly, I can’t see anything else than future growth for Deli’s and Hormel has either the 1 or nr 2 brand in their respective segment. Same with Kimberly Clark.

Mentally, I’ve improved as a person. From friday to sunday, I spent hours upon hours doing yoga and meditation in a small temple 3 hours west from NY. Something strange happens in your brain when you move from being relaxed, bored, focused, bored again, feeling pain, being bored, focused and then again, relaxed. It’s kind of like how life is. This was my daily schedule:

What about debt and poverty? Well, I stayed at my friends flat at uptown west in middle Manhattan were the rent is 3843.86 or 30000 NOK per month. Insane rent, but I guess that’s what you get for staying on one of the hottest areas in the world. What surprised me was that most people dressed quite boring and dull. Nothing fancy at all. But, the Single Most Important observation was that most people looked angry, worried and living a life by moving from A to B. As a finance guy, I’ve always wanted to work on Wall Street a few years, but not anymore. Sure, it’s exciting, but overall, no matter how much money people have, the ongoing stress isn’t worth it. A solid reminder to why I should focus my energy on saving and doing what I like, not what I get paid to like.

Moving forward to investing and income:
The following companies sent me a check in February

  • GIS: $7.65, CVS: $12.81, HRL: $10.72, O: $20.07, WELL: $14.88, OHI: $33.17 (SOLD), SKT: 28.67, T: $26.80

Again the dividend income was quadrupled, but that isn’t something I suspect in the future. The main reason is that I previously owned few companies that paid their dividend in february and that I added a lot of capital.

I’ve done some changes to the Dividend Income Spreadsheet and the Portfolio Spreadsheet which I hope you enjoy. I find it fun to always upgrade and find ways to measure the progress.

2017 vs 2018

Accumulated Dividend Income

Recent purchase/sell

  • Sold Omega Healthcare Investors at a 10% total loss because the future long-term problems concerns me. I don’t mind short-term problems, but the recent dividend freeze and the high payout ratio combined with lot’s of problems doesn’t make me wanting to see this thing though. I’d rather replace my money elsewhere now that many REITs and utilities are more fairly priced. If I’d chosen to still hold OHI, it would force me to read every Q report, every transcript and news regarding the company. With a 2.4% weighting and a minor loss, the time-effort isn’t worth it.
  • Bougth Enbridge which favours a yield around 6.2% and high dividend growth. I love companies were the income and debt is fixed (94 % and 85% debt-fixed-rate respectively), conservative management and solid EPS growth history. I picked up the company close to $40 which I think is a strong buy.
  • Sold Storebrand after holding it for 528 days and collecting a 60% profit . From now on, I expect the company to follow the OSEBX closely. Which means that future return is the same as OSEBX, but by holding STB, one adds single-exposure risk. Still bull on financials. Nothing wrong with “following the OSEBX”, but the index itself is very concentrated with 5 holdings making up more than 50% (Statoil ASA 16.6 % DNB ASA 12.2% Telenor ASA 10.8 % Norsk Hydro ASA 6.4 % Yara International ASA 5.3 %). I rather try to stay long on companies with wide moats and increasing earnings and dividends.
  • Bought Investor AB B at a 26% discount to NAV which is a swedish index-like investment company holding many high quality holdings such as Atlas Copco, ABB, SEB, AstraZeneca, Wärtsilä, Saab, Electrolux, Nasdaq, Sobi, Ericsson, Husqvarna Group. 

 

Overall thoughts

In total, I’m very happy about the current holdings and how I feel and think about investing. I don’t mind neglecting my portfolio for 7 days or more, and I think that’s good. The income is building up and the fund-portfolio is also getting bigger and bigger. As a person, I feel good about life and especially that I’m able to spend my money on travelling, which is what I care most about.

If you’re wondering or just craving the need to have a picture of how I look like , here’s a drawing of me done @ central park (the painter was maybe a bit too kind?):

Thanks for reading,

Stockles

20 comments

  1. Very nice post and glad to see you getting some quality time for yourself in NYC. I totally get what you are saying about seeing angry people everywhere, especially in big busy city like NYC. You had to go all the way to the retreat to see a cute yogi master, that’s sad man!

    I think big cities are fun to visit once in a while and live when one is young. I avoid big cities, to me they all look the same, crowded and lots of angry busy people. Not to mention homelessness is everywhere.

    So you dumped OHI? I understand your reason of having to keep monitoring it closely. I made a decision to keep it even if they cut dividend. The reason being I’ve already trimmed the position several months ago and currently at half a position. Still a big position and one of my top dividend payers. Selling it here would incur me a big size loss. Also, I’m monitoring it closely and I feel management is on top of dealing with problem tenants. I think OHI would come out okay.

    I also own Embridge, I like the company. A little concerned about all this trade war talk and if there could be any impact to Embridge. I like their commitment to grow div by 10% annually. Hope they can meet that commitment.

    1. Hi Mr.ATM

      Thank you so much! Glad that you liked it
      Yes, it’s quite scary too. That’s what most of us have in mind when thinking about success, but then you flip the coin and ask those guys what they want and they only want peace and a simpler life.

      “I think everybody should get rich and famous and do everything they ever dreamed of so they can see that it’s not the answer.”

      ― Jim Carrey

      I like big cities because they do offer a lot and especielly new cultures, food, people and exciting possibilites, but I think it’s better to have a base that’s more relaxed and travel to bigger cities (not the opposite way).

      Yes, I sure did. Have you read this? https://finance.yahoo.com/news/texas-nursing-home-chain-orianna-185857374.html

      Enbridge is cool and a perfect mix between income and growth. I see your point about the trade war, looks like Canada is safe (https://www.reuters.com/article/us-china-usa-trade/trump-sets-steel-and-aluminum-tariffs-mexico-canada-exempted-idUSKCN1GK09C but the contracts and debt is so fixed atm so I think it’s fine. The payout ratio is also rather low.

      See you!

      1. Regarding Orianna bankruptcy, yeah l saw it when the news came out and tweeted about it. I think it’s a positive development as it makes it easy for ohi mgmt. to restructure those orianna assets without wasting time. The faster they can put those properties onto a new operator or sell them, the better. Orianna was in the guidance so per mr picket there shouldn’t be any change to their 2018 guidance. Will see what happens. Wish me luck 😉
        Mr. ATM recently posted…Micro Blog #21 My Tactics For Investing In Dividend StocksMy Profile

  2. Hope you had a great time in NY! I just went there for the first time last year. Different change of scenery that’s for sure. Glad you agree with the “boring” stocks makes the best candidates for core positions. I see Enbridge a lot and hear it is a good buy. Haven’t had much time to look into it further though. But looks like it should pay off well for you going forward. I am hesitant on OHI as well. That yield just seems a little high for my level of risk. Not sure about the length of being able to maintain that for them. Also wasn’t Wall St cool? Did you get a picture next to the bull? Too bad there are always tons of people around so it is hard to get a good one. Awesome month. I though my 83% growth was huge but you completely out played that. Well done!

    1. Hi Daze!

      Crazy city right?! It’s strange being young and owning so boring stocks while everyone else talks about Amazon, Netflix and so on. However, I do think stocks such as AT&T with only 2% anticipated EPS growth might be a little to conservative for us, so I’m not going to add a lot to that position right now. We have time on our side, but a yearly 2 CAGR is not taking advantage of that. Wall St was so cool. The vibe was amazing (and strange), but the bull was crowded. Damn you chinese tourists!

      1. Boring stocks are great because they also generate lots and lots of cash which they can then use to buy exciting companies, this is how the boring companies usually grow. I’m a lot more risk averse now than I used to 10 or 20 years ago. But you guys are young, so you can take more risk, but it should be a calculated risk. Not, all or nothing type of risk, in my opinion.

        Also, travel as much as you can and see the world, while you are young, as we get old our bodies become less tolerant to travelling. I’m finding this out now, and I’m only in my mid 40s.
        Mr. ATM recently posted…Micro Blog #21 My Tactics For Investing In Dividend StocksMy Profile

    1. Hi Tom,

      Glad to see you here again and sorry for being a stranger. It’s all good here. Looks like things are going good too over at Dividend Diversify!

  3. You been quite for a while, but what a great post to bounce back 🙂 Interesting to read about your Yoga experience, I’ve never tried it myself, but should definitely try it to reduce my stress level these days.

    And congratulations on your impressive year-on-year growth!
    The Beta Post recently posted…The Statoil DRIPMy Profile

    1. Hi Beta Post 🙂

      Yes, true. Sometimes I just don’t feel like writing and then I don’t. Also, I’ve spent most of my time doing side hustling and getting ready to move to Tokyo (which I now do).

      I know that many people only see yoga and medition as a way to decreas stress, but that’s just one aspect. It’s also about becoming more aware, more present and able to enjoy the daily life.

      See you soon my friend:)

  4. Great work for the month of Feb. To quadruple your year over year income must feel great. I think that was cool to see WELL on the NYSE. If you own many U.S. companies you don’t have to walk far to see your investments. YUM, MCD, as you said HRL, KMB, KO, PEP, SBUX and more… it’s everywhere. It’s great to think like an owner when it comes to your investments and if you can see your shares in the real world it just brings things to life. Looks like you had a good time in NY. I like visiting there but wouldn’t want to live there. Seems too stressful to me. Thanks for sharing.
    DivHut recently posted…Dividend Income Update February 2018My Profile

    1. Hi DivHut 🙂

      Long time no see! Yes, it’s so much fun taking the “temp” on the companies you own. I actually feel really good when I see that Starbucks is full of customers or that electricity uses increases year by year.

      i can see why people like to live in NY (I live in Tokyo atm) but in the long term, I’ll probably move to a place which is more quiet and closer to the nature.
      I hope things are going good for you!

  5. Hi,

    I am glad I found your blog. I right now am pumped up but I don’t know where to start. I know I will have to devour your blog and get as much info as I can. I do not know much about this but one thing I am sure of is that it calls for attention to detail when choosing where to put your money. I am willing to do all things necessary.

    Thanks for sharing!
    Bruce recently posted…20 Awesome YouTube Channel Ideas For Making MoneyMy Profile

    1. Hi Bruce,

      Very glad to hear that. Just make sure to take your time, understand investing and what a stock really is. Don’t go for news and don’t just jump into something you can’t understand. Take your time, read, read more and you will learn a lot more than many people.

      Stockles

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