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 checks
- 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 have happened recently. Last week, I was walking around on Wall Street (visiting NY) and randomly looked 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. I could walk around and see 3 to 5 companies in my portfolio in one street alone. 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 other than future growth for Deli. Hormel has either the 1 or number 2 brand in their respective segment. Same with Kimberly Clark.
Mentally, I’ve improved as a person. I spent hours upon hours doing yoga and meditation in a small temple 3 hours west from NY from Friday to Sunday. Something strange happens in your brain when you move from being relaxed, bored to focused, bored again; feeling pain, being bored to focused and then relaxed again. It’s kind of like how life is. This was my daily schedule:
What about debt and poverty? Well, I stayed at my friend’s flat at Uptown West in Middle Manhattan were the rent is $3,843.86 or 30,000 NOK per month. Insane rent, but I guess that’s what you get for staying in 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 I had is 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 no matter how much money people have, the ongoing stress isn’t worth it. A solid reminder to why I should focus my energies on saving and doing what I like, not what I get paid to like.
Moving forward to investing and income:
The companies that 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 only a few companies that paid their dividend in February and that I added a lot of capital.
2017 vs 2018
Accumulated Dividend Income
- Sold Omega Healthcare Investors at a 10% total loss because the future long-term problems concern 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 want to see this thing though. I’d rather place 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.
- Bought Enbridge which favours a yield of around 6.2% and high dividend growth. I love companies where the income and debt are 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 %, and Yara International ASA 5.3 %). I rather 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, and Husqvarna Group.
In total, I’m 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 growing bigger and bigger. As a person, I feel good about life and especially that I’m able to spend my money on traveling, which is what I care most about.
If you’re wondering or just craving the need to have a picture of what I look like, here’s a drawing of me done @ central park (the painter was maybe a bit too kind? ):
Thanks for reading,