Monthly Archives: October 2015

Two new October stock buys: SAB and GSK

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I added two more stocks to my portfolio this month:

  • 20x SABMiller (SAB): This is somewhat of a gamble on the acquisition by AB Inbev going through. At present my position is up ~9.5% but today’s stock price of £39.38 is still trading far below AB InBev’s takeover offer of £44 per share. Depending on how long completion of the acquisition takes, which is estimated to be around a year, SABMiller will likely pay one more interim dividend and one final dividend for book year 2015.
  • 40x GlaxoSmithKline (GSK): I added a bit more shares of this healthcare stock. GSK had some issues in the last two years resulting in a big drop in revenue and profit but it slowly seems to be getting back on track. The current yield is around 5.6% and the company will pay out a special one-off dividend of £0.20 on top of its Q4 2015 dividend in April 2016. Market expectations are rather low and the company is saddled with a pretty high debt load. The dividend is barely covered by current earnings and will be frozen at £0.80 per share until at least 2017. I now consider this to be a full position and will not be adding further in the foreseeable future.

Combined these purchases add 48.53EUR to my annual dividend income, which is projected to be 1154.12EUR at current currency exchange rates. It’s pretty exciting how close I’m getting to the 1200EUR mark, looks like I may be able to hit my 100EUR/month goal towards the end of December or January.

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Dividend income October 2015

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With the dividend payment from GE hitting my account earlier today I can close October with my usual dividend income report.

This month I received four dividends:

  • Coca Cola: 9.38EUR
  • GlaxoSmithKline: 21.61EUR
  • Philip Morris: 52.85EUR
  • General Electric: 6.50EUR

As always, these are the net dividends I receive after currency conversion and dividend tax. Adding it all up gives a total of 90.34EUR in dividends for October.

Over the last couple of months my portfolio has seen some double-digit swings, a couple of weeks ago my total return plunged into the red but thanks to the strong performance of the stock market in October I’m once again at a total gain of over 11%. While it’s nice to see the portfolio value go up so fast, the downside of this is that dividend yields on a lot of stocks I’m interested in are becoming less attractive.

Starting October with two new dividend buys

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I started October with two new dividend buys:

  • First I bought 27 more shares of Unilever (ULVR), this is one of my ultra-safe foundation stocks that I want to own a lot more of.
  • Next I bought 16 more shares of Van de Velde (VAN), this is one of my small cap stocks that I like a lot.

These two purchases increase my annual dividend income by 50.26EUR (after taxes), plus Van de Velde is paying out an extra interim dividend in November so that’s an additional 16.2EUR in dividend income next month.