June dividend income report and the Idorsia spin-off

It’s the end of the month so here’s my latest dividend income report!

June 2017 dividend income

  • Unilever: 17.37EUR
  • NVIDIA: 1.40EUR
  • Hershey: 5.55EUR
  • Moury Construct: 36.40EUR
  • McDonald’s: 5EUR
  • Royal Dutch Shell: 68.79EUR
  • Gilead: 4.31EUR

In total that adds up to 138.82EUR in dividend income this month. As always, the figures I list are after all taxes and applicable fees. This is the fourth month in a row this year of triple-digit dividend income.

New purchases
Since my last report I added shares of Nike as well as AB InBev.

Actelion spin-off Idorsia off to a good start
As I wrote a couple of months ago, I bought shares of Actelion as a merger play. The company got acquired by Johnson & Johnson and shareholders got $280 in cash per share plus one share of the new spin-off R&D company called Idorsia. At the time I bought the shares it seemed like a good way to earn some cash plus get some free shares of a new company.

The offer was in US dollars so unfortunately the cash part worked out less favorable than expected due to the rising euro. Instead of a minor gain of a couple of percentages, I ended up with a 35.67EUR less than my original investment in Actelion.

Fortunately, it seems the new Idorsia spin-off is worth a lot more than expected. The company went public for 10CHF per share two weeks ago and is now trading at 17CHF! That’s a 70 percent gain in less than two weeks which tips the balance to a total gain of 4.3% for my four-month investment in Actelion.

Part of the astronomical rise is attributed to some large purchases. Actelion co-founder Jean-Paul Clozel (who now leads Idorsia) started with a 15.12 percent stake on the day of the IPO and has been using the cash he received from Johnson & Johnson to steadily increase his stake. According to the latest disclosure, Clozel and his wife now own 22.84 percent of Idorsia. Talk about a great vote of confidence!

Anyway, I now own 8 shares of Idorsia which I plan to hold for a long time. They’re not worth much at the moment but hopefully the company strikes gold with its R&D pipeline.

idorsia

How much dividend income did you receive this month?

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14 thoughts on “June dividend income report and the Idorsia spin-off

  1. CrossCountry

    Hey there,

    Nice month for you! Over 100€ BING!

    How many shares do you own of UN and RDS.B? A hefty amount received 🙂

    Are you not worried owning lot’s of RDS.B shares for the moment?Royal Dutch Shell’s payout ratio is very high (over 60% if I am not mistaken) and there have been no dividend increase since early 2014. Looks like they won’t increase dividends anytime soon.

    CrossCountry.

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    1. Dividends Are Coming Post author

      Hi CrossCountry,

      You can check the “My Portfolio” page for a frequently updated list of my portfolio, there’s a link below the header. At the moment 72 shares of Unilever and 234 shares of RDSB.

      Given the high dividend yield I don’t mind the lack of dividend growth of the last couple of years. I believe the dividend is safe for the foreseeable future but longer term it may become more of a “buy-and-monitor” stock than typical “buy-and-hold” due to the rise of EVs and renewable energy. But with a portfolio weight of 8.75% it doesn’t really get me worried.

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      1. CrossCountry

        Got that, thanks for sharing !

        Btw nice job adding a few Abinbev share. I do not hold a position with this company but definitely a fan of their products and done all my research but was waiting for a small dip. Might pull the trigger but don’t you think the PE is still high? I am still hesitating if it makes sense to start initiating a position right now. What’s your opinion on that? I find it quite difficult to analyse their financial data for various reasons…. Payout Ratio high as well and need to have a look at their Debt levels.

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      2. Dividends Are Coming Post author

        I bought AB InBev more for expected capital appreciation over the medium term rather than dividend growth. They’re already paying out a lot of billions in dividend so there’s not going to be much (if any) room for dividend increases in the near future as they need to burn off a lot of debt first. There are some red flags that would be a problem for most companies but I’m giving AB InBev a pass here thanks to the outstanding management.

        At the moment there are a couple of factors that make it hard to analyze but I decided to add some shares this week as they dipped under the 100EUR mark. Carlos Brito and his team have shown great proficiency at generating a lot of shareholder value out of complex takeover deals, it’s what they do best so I hope they can generate a lot more free cash flow out of the combined AB InBev + SABMiller.

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  2. Dividend Diplomats

    Congrats on the great months. Four straight months of 100+ euros. Now you are really starting to see the power of dividend investing flexing its muscles. Keep it up and lets keep the streak alive!

    Bert

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  3. pve1418

    I actually visited Actelion 2 years ago when their share price was still 65. Too bad I didn’t buy then. Thanks for the tip on the new company ! Congrats with a solid month !

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    1. Dividends Are Coming Post author

      Interesting that you visited the company two years ago. Idorsia still has a lot of work ahead of it, they’ve got quite a bit of cash from J&J and a nice track record but they still need to turn the pipeline into profits.

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