It’s the end of the month again and that’s usually when I have some fresh cash available for my dividend growth portfolio. I enjoy adding income producing assets to my portfolio but one of the problems I often encounter is that it’s hard to make a choice of which stock to buy.
Given the relatively small sums I invest every month, I usually don’t want to split it into more than one purchase but as I still have quite a lot of free trades with my broker I may use some of these trades to perform some small mid-month purchases as there are quite a lot of big dividends incoming in the next three months or so.
This month I decided to expand my Diageo position. I already owned some London-listed Diageo shares but this time I decided to complicate things a bit by buying some of the Diageo ADRs on the NYSE. I have a slight preference for buying shares on their home market exchange but in this case the LSE was already closed. The fact that you don’t have to pay the 0.5% UK Stamp Duty if you buy ADRs of UK companies is worth the hassle of an extra line in my spreadsheets, especially as there don’t seem to be any fees involved with this ADR.
In the case of Diageo, each ADR represents four ordinary shares. I bought 11 Diageo ADRs (DEO) – which increases my after-taxes annual dividend income by £18.47 (23.61EUR). I like this stock a lot and may further expand my position in the coming months if it stays close to this price level.
I just had a look at my dividend calendar and the dividend of my existing Diageo position should hit my account around April 7th. Perhaps a good occasion to celebrate with a couple of shots of vodka like in the photo below 😉
My forward annual dividend income is now 1214.72EUR. It really feels like I’m treading water here as my forward annual dividend income is still lower than the figure I calculated in November 2015 despite a bunch of new stock additions since that date. Currency fluctuations, an increase in the Belgian dividend tax rate and two dividend cuts (KMI and BHP Billiton) are to blame for this.
Which stock(s) or other exchange traded assets did you buy this month?