Dividend Income Report, November 2018
Hey everyone and welcome to my Dividend Income series! This will be for you to see the income I receive from my Stocks and Shares ISA and the changes compared to the previous year. The great thing about investing is that you get paid several times a year by the companies you’ve put money into! So not only do you get a paycheck from your employer, but you also get paid several times a month from extremely well run businesses.
For the month of November, I’ve had to deal with relocating outside of London to be able to provide my daughter with a better quality of life growing up. For this reason, I was offline with no broadband connection for 2 weeks! I posted on twitter using my cell phone saying how much I rely on the internet, it literally felt like I was living in the dark ages.
For this month I deposited £100 in fresh capital and I reinvested my dividend income.
I sold my holdings in Apollo Commercial Real Estate (NYSE:ARI) as its funds from operations are barely covering the dividend payments, Brad Thomas also did some further analysis on the mezzanine loans and the fact the company issued new shares below book value meant it would have to reach for yield above its average in order to compensate. I got out of the company with a total return of 8.26%, not the best I admit but mREITs perform poorly in a rising market, the company was mainly to counterbalance my BDC holdings.
I also sold Oxford Square Capital (NASDAQ:OXSQ) for pretty much the same reason, I was expecting their net investment income would grow a lot faster once oil prices had recovered, but they still seem unable to cover the dividend. I managed to get a total return of 16.84%, which I’m more than happy with for a company whose fundamentals are not improving in my opinion.
The proceeds were used to purchase additional shares British American Tobacco (LON:BATS) bringing it up to a full position and equally weighted to my holdings in Imperial Brands (LON:IMB). The reasoning for this was due to the company being severely punished due to rumors of the FDA considering a menthol cigarette ban. Considering British American Tobacco recently acquired the rest of Reynolds American in 2017 for a staggering $49 billion, which held America’s #1 selling menthol cigarette brand Newport, this new development is a bitter blow and is poor timing if the ban happens.
I’ll need to dig into the annual reports and subtract the free cash flow that was generated by Reynold American’s menthol cigarette brands along with the parent company British American Tobacco to give me an idea on the current valuation of the company. If the company can no longer grow the dividend, I still have a secure 7% yield in a company that is making moves in next-generation products and cannabis use.
With my fresh capital and dividends from the previous month, my purchases are as follows:
Imperial Brands (LON:IMB), 11 shares, cost £294.11, income £20.65, 7.02% YOC
Legal & General Global Emerging Markets Index, £50
Legal & General International Index, £25
Legal & General Global Real Estate Index, £25
For November I received income from 10 holdings, these will be listed below compared to the same period last year.
|Company||November 2017||November 2018||Change|
|British American Tobacco||£5.86|
|Chatham Lodging Trust||£5.24||£5.52||5.34%|
|Main Street Capital||£5.63|
|Omega Healthcare Investors||£25.11||£49.32||96.42%|
|PennantPark Floating Rate||£9.26|
|Solar Senior Capital||£8.85|
|InfraCap MLP ETF||£20.23|
The only glaring difference compared to last year is Omega Healthcare Investors (NYSE:OHI), I doubled down on my position when the stock market overreacted to 1 tenant having issues paying rent. The company’s share price has risen by 35.33% year-to-date.
Only 1 increase for November but a special is welcome too!
Ladder Capital (NYSE:LADR) declares $0.34/share quarterly dividend, 4.6% increase from prior dividend of $0.325.
Fidus Investment declares $0.39 regular and $0.04 special dividend
To any dividend bloggers or investors following my website, feel free to leave a comment below telling me how you did!