Last week I was still struggling about the stock selection for this month’s purchase but thanks to the arrival of a bit more capital than expected, and some free trades from my broker, the choice was easier than expected.
Instead of just one purchase, like I usually do, I added shares to an existing position and further diversified my portfolio with two new positions.
- Diageo (LON:DGE): I added 25 more shares to my existing position. A month or two ago I wrote a SA piece about the company’s dividend history, it’s well on its way towards becoming a UK dividend aristocrat. At the current share price, Diageo approaches my sweet-spot pre-tax dividend yield of 3 percent.
- PZ Cussons (LON:PZC): I bought 174 shares of PZ Cussons, that sounds like a lot but it’s because the company has a pretty low share price. PZ Cussons is a more focused, small-scale version of bigger consumer giants like Unilever and P&G. This UK-based company is not well known but has a very large presence in emerging markets. As I mentioned in my recent SA article about PZ Cussons, it has a 42-year dividend growth history and currently trades at a dividend yield of 2.79 percent.
- Sanofi (EPA:SAN): Last but not least, I bought 15 shares of French biotech/pharma hybrid Sanofi. I want more exposure to the healthcare sector and I think Sanofi offers an interesting entry point right now. As I wrote a couple of weeks ago, Sanofi’s recent dividend growth has been pretty low but the company offers an interesting pipeline and an enticing 3.56 percent entry-yield.
In total, these three purchases add an estimated 54.25EUR to my 2016 dividend income, bringing my 2016 forecast to 1183EUR — excluding unannounced dividend increases/cuts and currency exchange fluctuations.
Despite the new purchases, the new 2016 forecast is quite a bit lower than last month’s 1240EUR forecast. There are a number of reasons for this though, one of the biggest being the 75 percent dividend cut by Kinder Morgan. Secondly, the euro strengthened a bit versus the dollar and the pound, and I also updated my spreadsheet to account for the 2 percent increase in dividend taxation levied by the Belgian government.
That’s all for 2015 folks. I wish you all a very healthy and prosperous 2016!
Nice purchases, DAC. I am not familiar with PZC, will need to look it up.
Thanks for sharing
Thanks for stopping by Roadmap2Retire.
PZ Cussons has a market cap of around $1.75 billion and does most of its business in Asia and Africa so it’s not a well-known name even though it has a pretty impressive dividend growth record;
Looks like a strong year ending.
The new Belgian tax rule are a big bummer for dgi investors. They also limit my options portfolio.
Keep up the good work and best wishes for 2016
Indeed, one can only dream of the 15% rate from a couple of years ago. I don’t think the tax on small investors (aka speculation tax) will hurt me a lot but I still hope they get rid of this farce asap.
Best wishes for 2016!
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Looks like a good way to end the year. I never looked at Pz Cussons before and I might take a look at it for my buys this month since I want some more exposure to emerging markets.
Have a good 2016.
It’s a small under-the-radar firm but I think it’s fairly priced right now.
Best wishes for 2016.
Thanks for sharing your recent buys with us. I like Diageo a lot and have held that name in my account for about 7 years. I plan to keep that name for a lot longer. I heard of PZ Cussons before from another dividend growth blog based in the U.K. Looks like a conservative consumer staple. Keep finding quality names at discounted prices!
Thanks for stopping by. Diageo is probably one of the positions in my portfolio that I will continue to add to if it stays around this level.