First week of January 2023

First week of 2023 is over. We received good amount of dividends from already sold holdings and we continued our rebuilding program. We bought back 13 shares of Sampo @50,00538 €, 12 shares of Whitestone REIT @9,89333 USD and 10 shares of MSC Industrial Direct @81,90 USD. We made one small speculative purchase and bought 100 shares of Fellow Bank @0,3757 €. These puchases should increase our passive income approximately by 80 €.

We received following dividends:

• 5,69 € from Genuine Parts
• 34,60 € from Iron Mountain 
• 9,17 € from Methanex
• 21,83 € from Telus
• 28,40 € from Brookfield Infrastructure
• 23,57 € from Regency Centers 
• 66,33 € from Saratoga Investment
• 40,78 € from MidCap Financial Investment
• 0,31 € interests
  

We received total of 230,68 € passive income, which would had been just perfect for our original 1000 €/month target. 

End of the year 2022

The Year 2022 is over. For us it was quite a ride. We reached our yearly dividend goal in September and our portfolio grew as planned. We also set a target for 2023 to receive 1000 € dividends in our accounts per month. Unfortunately the interests started to raise more rapidly than we expected. At the beginning of the year we had more than 260 000 € debt and that was fine with the interest rates what we had back then. As we knew the fact that interests will raise we accelerated payback of our loans already in early 2022. We would have been comfortable with interests between 1-2%. We made a decision that if Euribor 12 breaks the 3% level we will pay back all our debts. We tried to negotiate with our bank to find out if there could be some arrangement which would benefit both but we failed. As Euribor 12 broke the 3% level at the end of November we decided to get rid of our loan and repay everything. Not only we got rid of every loan we also got a chance to rebuilt and organize our holdings optimally between different accounts. Earlier our holdings were not so well organized between the brokers and accounts.

Investment portfolio

Asset class	31st Dec 21	31st Mar 22	30th Jun 22	30th Sep 22	31st Dec 22
Cash	6 396,97 €	7 107,92 €	6 761,52 €	6 443,06 €	2774,08€
Investment funds	9 834,18 €	9 831,25 €	11 267,08 €	9 458,80 €	9458,80 €
Coop memberships	1 500,00 €	1 500,00 €	1 500,00 €	1 500,00 €	1 500,00 €
Shares	227 828,13 €	241 359,58 €	233 072,96 €	237 740,19 €	12 027,66€
Gross investment portfolio	225 543,86 €	245 559,28 €	259 799,02 €	252 610,56 €	25 760,24€
Investment loan	16 990,76 €	14 225,10 €	13 365,98 €	12 446,07 €	0 €
Net investment portfolio	228 568,52 €	245 573,92 €	239 244,58 €	242 695,98 €	25 760,24€

We have set some new targets for 2023 as we abandoned the target of 1000 € monthly dividends in 2023 for obvious reasons. Our new targets are to have a investment portfolio of 50 000 € by end of the year. Dividendwise we would like to reach level of 2018 dividends. 

We have already started rebuilding our portfolio and we bought 29 shares of Spirit Realty Capital @39,63448 USD, which is 0,41552 USD lower than we sold these. 

We received following dividends

• 24,98 € from Main Street Capital
• 0,70 € from Gladstone Investment Corp BDC
• 19,96 € from Gladstone Commercial Reit
• 22,20 € from Gilead Sciences Inc
• 8,79 € from Cohen & Steers Infrastructure fund
• 10,65 € from A&W Royalties 
• 13,84 € from Transalta Renewables
• 20,00 € from Citycon
• 27,46 € from Alpine Income Properties 
• 41,69 € from Simon Property Group

Total amount of dividends received last week was 190,27 €. In December we received 1034,43 € in dividends, which was 3rd best month in 2022. Usually December has been good indicator of the next year's level of dividends in general so our original target of 1000 €/month would not have been too hard to reach. Investment income received in 2022 was totally 11 690,84 €. 

Fourth week of December 2022

Merry Christmas to everyone. We had a very busy week as we sold most of our positions to pay back our mortgage. After we have paid back the mortgage we will return to market. We will not list all the sold positions since there were several dozen of those. We haven't calculated profits from sales yet. 

Dividendwise week was quite good. We received following dividends

• 62,34 € from Blackrock
• 89,32 € from Kesko
• 10,67 € from Dominion Energy
• 53,26 € from Manulife Financial Corp

 Total amount of dividends was 215,89 € which is a pretty good amount. 

 

Third week of December 2022

This week was quite active. We received dividends in 4 days out of 5 and we continued to sell our positions to pay back our mortgage. 

The order of sales depends on several factors. We try to optimize the dividend income and taxes from profits from sales. So if ex-date is near, we wait until ex-date has passed. As we have sold many positions with good profit we will sell only positions which have unrealized losses this year. So remaining positions which have unrealized profits will be sold in January. We also consider dividend yield, so we are selling positions with lowest dividend yield first and we try to leave best dividend payers to portfolio. That way we can accelerate rebuilding the portfolio as much as possible. 

We sold following positions 

• 96 shares of Cibus Nordic Real Estate @142,27853 SEK
• 500 shares of Telia Company @26,9031 SEK
• 1137 shares of Vodafone @0,8361 £
• 8 shares of Genuine parts @178,761 $
• 20 shares of Dominion Energy @68,53608
• 70 shares of Coca-cola @62,95378 €

 We received following dividends

• 24,53 € from Coca-Cola
• 16,72 € from Whitestone REIT
• 54,17 € from Main Street Capital
• 1,05 € from Gladstone Investment Corp
• 10,86 € from Walgreens Boots Alliance
• 29,87 € from Washington H. Soul Pattinson
• 42,63 € from National Australia Bank
• 4,51 € from Owl Rock Capital
• 8,30 € from Aapple Hospitality Reit
• 17,55 € from Exchange Income
• 24,69 € from Realty Income Corp
• 79,95 € from Duke Energy

Total amount of dividends this week was 314,83 €, which is a really good amount. The dividends from Main Street Capital are unusually large because our bank failed to carry out participation to DRIP. Generally we are very unhappy with our current bank's performance. Paying back the mortgage is one activity to loosen ties to current bank. Without mortgage it is easier to change bank if we find better one.

Second week of December 2022

This week was uneventful. Only notable event was that finally our bank finalised Main Street Capital's November dividends. Normally the DRIP has taken one week to be sorted out, but this time it took 22 days. Otherwise it was very quiet except a few dividends

Dividends received:

• 1 share of Main Street Capital worth 36,07 €
• 15,60 € as a remainder from Main Street Capital DRIP
• -5,32 € for taxes from Main Street Capital DRIP
• 34,80 € from Johnson & Johnson
• 49,81 € from CSR Limited
• 18,73 € from Southern Co
• 20,43 € from Exxon Mobil

Total amount of dividends was 170,12 €. 

First week of December 2022

First week of December is over. As we have fully paid back the investment loan we no longer have monthly repayments. Instead, we made extra mortgage repayment with cash received from sales. 

This week we closed our position in Lazard. This was unfortunate purchase in the first place. Somehow,  when investigating the company we missed the information that company has another headquarter is in Bermuda. In taxationwise this is problematic as the total taxation is really heavy for us. Also the changes in US taxation at 1st of Jan 2023 accelerated the sales. After 1st of Jan we would have paid 10% witheld tax from gross sale price of the share. These are reasons why we ended up correcting our mistake rapidly. We realized 8.8% annualized net profit with this investment. Even though we made profit the investment was a mistake. We sold Lazard @36,94141 USD

Received dividends:

• 11,61 € from MSC Industrial (November)
• 15,55 € from LTC Properties
• 20,51 € from Gladstone Commercial Reit
• 0,71 € from Gladstone Investment Corp BDC
• 1,47 € from Sabra Healt Care Reit
• 18,62 € from Bank of Montreal
• 10,95 € from A&W Revenue Royalties
• 14,22 € from Transalta Renewables
• 6,53 € from Cibus (December)
• 9,04 € from Cohen & Steers Infrastructure
• 53,94 € from Canadian Utilities
• 69,44 € from Enbridge Inc

Total amount of dividends this week was 232,59 €. In November we received 645,42 € in dividends, which is less than our 725 € monthly target for 2022. Our bank failed to deliver some dividends from Main Street Capital in November. 

December dividends are now at 138,95 €. 

Fourth week of November 2022

We made a decision to dramatically lower our risks and pay back all our existing loans mortgage included within the next 3 months. After that we will start rebuilding our dividend portfolio. That's why we sold quite a many positions this week. With money received from sales we paid back 11 801,52 € principal and 20,37 interest and fees.Paying back investment loan will lower our negative monthly cashflow by 300-350 € and we also saved approximately 400 € in fees and interests. 

We will make the first larger payment on our mortgage in early December. Paying back mortgage fully will free approximately 1900 € monthly cashflow. Even though we will temporarely lose more dividend income than the interests would have been after the interest increase, we will significantly reduce our liquidity risks especially in current inflation situation. The freed cashflow helps to rebuild the portfolio faster. At the same time we will optimize our positions in different accounts as now our positions havn't been very well organized between the accounts. 

Transaction made this week:

• sold 18 shares of MSC Industrial Direct @84,40223 USD, position closed
  
• sold 30 shares of Kemira @13,79067 €
• sold 34 shares of Southern @64,9001 USD, position closed
  
• sold 70 shares of Sampo @47,56571 €
• sold 100 shares of LTC Properties @38,6085 USD, position closed
  
• sold 200 shares of Whitestone Reit @9,2690 USD
• sold 535 shares of Nordea @9,82231
• bought 6 shares of Capman @2,58666 €
• sold 100 shares of National Australia Bank @30,875 AUD, position closed
  
• sold 367 shares of Brickworks @20,90 AUD
• sold 383 shares of AGL Energy @7,84 AUD, position closed
  
• sold 470 shares of CSR @4,68723 AUD, position closed
  
• sold 731 shares of Waypoint Reit @2,7 AUD, position closed
  

 We received following dividends:

• 104,46 € from Brickworks
• 35,08 € from Royal Bank of Canada

Total amount of dividends this week was 139,54 €. 

 

 

3rd week of November 2022

This week was quite remakable. We made several transactions and one major decision. 

The decision

We have decided to liquidate most of our positions within next 3 months in order to fully pay back our loans. The reason for this is that our loans are tied to Euribor 12 and interest rate adjustment date is approaching. The Euribor 12 is expected to be over 3% when the time for adjustment is due. This would mean significant increase in interest expenses and as a result interests would almost match our typical dividend income in a month. We rather radically decrease our risk levels than take a few euros in net dividens in month.This transaction will strenghten our monthly cashflow and enables us to rebuild and optimize our portfolios. 

This decision means that we will not reach our target of 1000 € in monthly dividend income next year so we will discard that goal. We will set a new goal after we have paid back our loans. We will not increase our positions until we have sorted the loans and we will start selling our positions right away. 

This week's transactions:

• bought 3 shares of Coca-cola @ 61,18523 USD
• bought 32 shares of Gladstone Commercial Reit @18,95139 USD
• bought 1 share of Gladstone Investment Corp BDC @15,04USD
• sold 14 shares of Exxon Mobil @113,20 USD
• Sold 12 shares of Orion Office Reit @9,50305 USD, position closed
• Sold 200 shares of Diversified Healthcare Trust @1,1548 USD, position closed
• bought 18 shares of Kesko A @20,80611 €
• bought 31 shares of Pacific Premier Bancorp @36,40226 USD

We will not calculate how these transactions will affect to the future dividend stream because we might sell some of these by end of February. 

We received following dividends:

• 23,76 € from Whitestone Reit
• 42,49 € from Abbvie
• 9,32 € from Main Street Capital
• 8,55 € from Apple Hospitality Reit
• 18,45 € from Exchange Income
• 18,74 € from Waypoint Reit
• 47,94 € from Owl Rock Capital 
• 54,57 € from Omega Healthcare Investors
• 1,62 € from Diversified Healthcare Trust
• 15,73 € from Lazard Ltd

Total amount of dividends this week was 241,17 €. 

 

Second week of November 2022

This week was very quiet as this time of month usually is. We have planned to make some transactions next week when our bank has discounted transaction fees on US markets. 

Transactions of the week

We sold 20 shares of Kemira @13,8995 €.  We realized 20,8 € profit with this transaction, which is 8 % gain on capital. Annualized return would be a bit better.

Dividends of the week

Also dividendwise this week was very quiet. We received 16,16 € from British American Tobacco and 2,51 € from Pacific Premier Bancorp.Total amount of dividends was 18,67 €. 

First week of November 2022

Month changed to November. It was again time to make our monthly investment loan payment so we paid back 322,19 € principal and 27,81 € fees and interests. We are little bit ahead of our payback schedule because we round up the payment to some nice even number. 

We are almost done with changing the broker. We are just waiting last dividends to arrive to old broker's account so that we can transfer rest of the money to our new broker. Then we can close the old account and we are done.  Last dividends arrive on 15th of November so we can transfer money on 16th. 

Dividend increases

Simon Property Group annouced a dividend increase. New quarterly dividend is 1.80 USD so increase is 0,05 USD/share. This will mean around 4,90 € increase in dividends in 2023. 

CSR increased interim dividend by 0,03 AUD so we will receive approximately 9,17 € more dividends in 2022 than anticipated. 

Third dividend increase this week was from Regency Centers. This is quite recently acquired holding in our portfolio. Regency Centers increased quarterly dividend by 4% increasing our 2023 dividends by 3,80 €.

Purchases

We bought 1 share of Capman @2,50 € with dividends received. That is the only transaction we made this week. 

Dividends

We received following dividends and interests:

• 16,19 € from LTC Properties (September)
• 17,95 € from Gladstone Commercial Reit (September)
  
• 0,68 € from Gladstone Commercial Reit (September)
• 9,41 € from Cohen & Steers Infrastructure Fund (September)
  
• 14,74 € from Transalta Renewables (September)
• 10,99 € from A&W Revenue Royalties (September)
  
• 23,78 € from Kemira (November)
• 6,53 € from Cibus Nordic (November)
• 55,74 € from Verizon Communication Inc (November)
• 40,88 € from Telia Company (November). 
• 0,23 € September interest income (November)
  

Total amount of capital income was 197,12 € which is fairly good for a week. Our September dividends were 736,79 € so we reached our monthly target also in September. Out of 10 months there are 3 months where we have not met the target. 

Capital income in November is now at 127,16 €.