The final dividend in 2019 has been recorded and it is time to review the lean, mean, dividend machine for the year. December was the month this year with the lowest dividend received, and I only received the monthly dividend from Transalta Renewables. I did not receive a dividend in December last year, hence 2019 is the first year with dividends every single month.

Dividends received per year

Quick facts about my dividend machine:

  • Average dividend per month: 1.733 NOK
  • Dividend received per day: 57 NOK
  • Current dividend yield: 3.3%
  • Current yield on cost: 3.8 %
  • Dividend increase compared to last year: 89%
  • Total dividend paid in 2019: 20.794 NOK
  • Received dividend from 26 companies in 2019 compared to 12 companies in 2018.
  • Expected organic dividend growth in 2020 is 7.9 %
  • Estimated dividend received in 2020: 28.262 NOK (based on status quo)
  • Withheld tax on dividends in 2019: 1.626 NOK

In December I’ve bought shares in:

  • Biotage AB – increased position to full size
  • Visa Inc – future dividend aristocrat?
  • Bakkafrost – participated in subsequent offering

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November has been a cold and rainy month and the dividends has poured into my account. This month has only been surpassed by April and May, which in the Nordic countries are the main period for capital distribution from listed companies, and I’ve recorded in total 2.397NOK from seven companies. Last year I received dividends in November from three companies, and again this is a sign that the lean, mean, dividend machine is on track.

I received the monthly dividend from TransAlta Renewables, quarterly dividend from AbbVie, AkerBP, Mowi, Ocean Yield and Equinor as well as the semi-annual dividend from Investor AB.

Current dividend yield for my portfolio is 3.3 % compared to 3.7% last month and the downward yield trend in my portfolio is starting to be more apparent. The reason why the yield is curving downwards is because share prices of my holdings has been positive, but I’ve also sold my shares in Hemfosa due to a takeover bid on the company and Ocean Yield with a very high dividend yield. These are now cash positions and I’m contemplating how to reinvest the funds going forward. I’ve also purchased shares in Biotage AB with a low yield, but a high expected dividend growth the coming years.

Above you can find what I expect to receive in dividends in 2020. I’ve estimated that my dividends will increase to ~27.600 NOK, which is an increase of 37% compared to my expected dividend for 2019. This increase is due to dividend growth from my companies, but mostly due to purchase of new companies.

In November I’ve bought shares in:

  • Biotage AB
  • Lerøy Seafood – ~ discount to peers
  • Sparebanken Vest – a no-brainer investment with low P/B, high ROE, 5% bonus shares the next two years

The offloaded positions this month is:

  • Nekkar ASA – sold at 3.19 NOK per share due to a more attractive investment option
  • Hemfosa – due to takeover bid
  • Ocean Yield

Every month I will post an update on my monthly dividends. Here you can find last the update for September.

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It’s time to sum up this month’s dividends, even though October is not over yet. I will not receive any more dividends this month and for October I recorded 791 NOK. This is down from last year, but last year I only received dividends from ABG Sundal Collier (which I offloaded during the year). This year I received dividends from three companies, which may be an indication that my portfolio is more diversified compared to last year.

I received the monthly dividend from TransAlta Renewables, quarterly dividend from Hemfosa and semi-annual dividends from Beijer Ref. If we include the witholding tax subtracted from the dividends my dividends this month is actually 902 NOK.

Current dividend yield for my portfolio is 3.7 % compared to 4.1%. The reason why my yield is lower since last month is because I’ve purchased some shares in Nekkar , with no dividend payouts, because I sold some shares in Eolus and because the yield in Tomra and NIBE is lower than my previous dividend yield. The dividend yield is also lower because the share price of my holdings has increased.

If you want to know why I decided to purchase shares in Nekkar you should read my write – up here: Nekkar – time to unveild value.

Above you can find what I expect to receive in dividends in 2020. I’ve estimated that my dividends will increase to ~27.000 NOK, which is an increase of 40%. This increase is due to dividend growth from my companies, but mostly due to purchase of new companies. In October I’ve bought shares in:

Every month I will post an update on my monthly dividends. Here you can find last the update for September.

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9 out of 12 months are over and it’s time to sum up the dividends for September. Last year the dividens for September ended on 312 NOK, while this year I recorded dividends of in total 1 340 NOK.

I received the monthly dividend from TransAlta Renewables, quarterly dividend from Mowi and semi-annual dividends from Castellum and Wärtsilä.

The current dividend yield for my portfolio is 4.1%.

I purchased Equinor last month, and subsequent to my buy the company announced a program for repurchase of own shares, which is another way to distribute cash to its shareholders. Read the journal entry here!

I added some shares in Castellum AB after the real estate sector was downgraded by Pareto Securities. The company has increased their dividends the past 22 years, and I expect them to announce a dividend increase for 2019 as well, since their property management income is up 9% as per end of Q2. Read more here

I bought my first shares in Securitas at 147 SEK on the 10 September 2019. The share price reacted very negative on Q2 2019 – figures. I believe the company is well managed, has a stabile growth outlook due to increased urbanisation, promising acquisitions and necessary investments in security technology. Read more here.

On the 11 September I almost doubled my post in TransAlta Renewables, which is a monthly dividend payer.

Finally, I decided to sell 25 % of my holdings in Eolus Vind, find out why I violated my own rules for when to sell a stock.

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

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I increased my holdings in this monthly dividend paying company on 11 September 2019. TransAlta Renewables is a renewable energy infrastructure company headquartered in Calgary, Alberta and is traded in Canadian Dollars. TransAlta renewables is the renewable energy subsidiary of TransAlta Corporation. The parent company owns roughly 61% of TransAlta renewable’s stock.

Majority of the company’s revenues comes from power generation from wind turbines (46%) and natural gas (47%). It has access to growth capital through the capital markets as well as their parent company; TransAlta Corporation. Find enclosed an investor presentation from May 2019.

Dividend: As mentioned the company pays out a monthly dividend and the current yield is ~7 %. I don’t believe the dividend will increase in the coming periods, but due to the contract length of their assets I believe that the current dividend is sustainable and attractive at these levels. The monthly dividends, stable income and low volatility gives the stock characteristics of a fixed income security, which is a great component for any portfolio.

Historically, the dividend has a 5 % annual CAGR, but the dividend did not increase from 2017 to 2019 suggesting that the future increases will be as great as in the past.

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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Dividends in July are all accounted for and booked.

Total dividend received in July was NOK 552 (not adjusted for witholding tax deducted). I received dividends from Hemfosa, Brookfield Renewable Partners and Transalta Renewables.

Total dividend received YTD is NOK 13 469 (not adjusted for witholding tax deducted) and I’m already ahead of dividends received last year which ended on NOK 11 000. For 2019 I expect to receive approximately NOK 20 000 in dividends.

Dividend yield: 3.9%

Yield on cost: 4.1%

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