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.


How much dividend income did you receive this month?


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.



    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.


      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.


      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.


  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!



  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 !


    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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