Dividend Income Update – August 2019

Dividend Income Update – August 2019

August is still not over, but I will not receive any more dividends this month. Last year the dividend in August ended on 215 NOK, and was crushed by the dividend received this year. 1255 NOK was received this August and brings this year’s total to 14 724 NOK and closer to my target of 20 000 NOK for 2019.

This month I received my monthly dividend from Transalta Renewables* as well as the quarterly dividends from AbbVie*, AkerBP and Equinor. The current dividend yield for my portfolio is 4.1% (up from 3.9% last month due to the switch between Scanship Holding and Equinor).

Equinor was included in the portfolio this month due to its high free cash flow and dividend yield, consistent dividends over the years, future optimistic prospects with Johan Sverdrup coming into play and the cheap valuation.

Scanship Holding was offloaded this month due to the increased volatility in the stock. The company is well managed and is backed by a megatrend of cleaner oceans, but I don’t want a company in my DIVIDEND portfolio where the share price loses 40% of its share price in one trading day. This is also one of my criteria when I choose to sell a stock.

*Dividends received are not adjusted for withholding tax deducted, which means that my broker withholds tax on share dividends (15% for countries with a tax treaty with Norway), which is subsequently paid out the next year. This will understate the dividend income updates and my annual portfolio return, but over the long run the effect in percent of total holdings goes down.

Every month I will post an update on my dividend update. Here you can find last the update for July. Subscribe below to receive a notification when a new post is out.

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2 Comments

  1. Congratulations on a solid increase from last year! Fun to see that TransAlta Renewables is also a part of your portfolio. How would you set this up against Brookfield Renewable Partners? For me, the endless stream of preference shares that could have a massive dilutive effect scared me straight into the arms of TransAlta.

    Keep up the good word, Edd, it’s fun to be a part of your journey.

    Like

    1. Thanks.

      To be honest I believe Brookfield is a safer bet than Transalta Renewables at the moment since it is more diversed and I believe that if the company decides to issue additional shares the deal is accretive for existing shareholders. Also believe that there might be a larger transaction the coming years between Brookfield-entities and Transalta (ref. Brookfield Asset Management), but this is just speculation on my side

      https://www.transalta.com/investors/press-releases/transalta-announces-strategic-investment-by-brookfield-renewable-partners/

      Like

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