Portfolio Update January 2018

It’s time for another update, since my last portfolio update was October 2017.

Purchases

Company Stock Units Price Date Cost
Tanger Factory Outlet Centers SKT 100 $22.81 2017-10-27 $2281.00
Vereit VER 200 $7.29 2018-01-18 $1458.00

 

Sells

none
 

Options

Stock Open Date Exp Date Type Strike Price Premium Fees
UNIT 2017-11-02 2018-04-20 Put $20.00 $190.00 $3.50

 

There aren’t too many updates, but I took some opportunities with the increased pressure in the REIT sector and the especially the retail REITs last year. I will increase my exposure in this segment if the price pressure continues to give us discounts due to the always recurring rate fears.

Guidance 2018

I’m going to buy a nice apartment for myself which will heavily influence my ability to invest this year. I will adjust my new goals accordingly. Nearly all my cash will be used to get a good mortgage at exactly 2% interest rate with a fixed mortgage term over 15 years and the possibility of 5% down payments per year. I think these are great conditions considering my low equity ratio under 10%. I just had to take the opportunity because it’s more expensive to rent. And if everything goes well this year, I don’t have to liquidate anything in my portfolio.
But nevertheless, I’m very interested to see what this year will bring for me. Maybe I can fetch some side jobs and get my emergency funds back to a convenient level and maybe even add some positions in my portfolio. But that would be extremely ambitious as I’m also planning to make an unpaid two month summer vacation this year, but we’ll see.

Dividend Income Update – December 2017

Dividends

  • BP (BP) – $29.75
  • Royal Dutch Shell (RDS-B) – $65.80
  • Ensco (ESV) – $8.00
  • National-Oilwell Varco (NOV) – $1.91
  • Gilead (GILD) – $66.30
  • Teva (TEVA) – $6.15
  • Helmerich & Payne (HP) – $29.75

Total dividends received during the month of December: $207.66

Total dividends received in 2017: $1453.94
Projected forward yearly dividend income: $2207.62
Projected forward average monthly dividend income: $183.97

Total option premiums received from closed options during the month of December: $0

Total income: $207.66

Dividend Income Update – November 2017

Dividends

  • Omega Healthcare Investors (OHI) – $55.25
  • Kinder Morgan (KMI) – $15.94
  • Sabra Health Care (SBRA) – $44.21
  • CVS Health (CVS) – $8.50
  • Tanger Factory Outlet Centers (SKT) – $29.11

Total dividends received during the month of November: $153.01

Total dividends received so far in 2017: $1246.28
Projected forward yearly dividend income: $2239.69
Projected forward average monthly dividend income: $186.64

Total option premiums received from closed options during the month of November: $0

Total income: $153.01

Dividend Income Update – October 2017

I’ve decided to add my monthly Dividend Income report again. I borrowed the structure from Alpha Target

Dividends

  • Altria (MO) – $26.35
  • STORE Capital (STOR) – $11.22
  • Uniti Group (UNIT) – $51.00

Total dividends received during the month of October: $88.57

Total dividends received so far in 2017: $1093.27
Projected forward yearly dividend income: $2229.50
Projected forward average monthly dividend income: $185.79

Options

  • UNIT Jan19’18 15 PUT – $127

Total option premiums received from closed options during the month of October: $127

Total income: $ 215.57

Portfolio Update October 2017

october_2017_update

Another month – another update!

Purchases

Company Stock Units Price Date Cost
Helmerich & Payne HP 20 $48.92 2017-09-13 $978.40
Uniti Group UNIT 100 $16.98 2017-09-19 $1698
CVS Health CVS 20 $73.85 2017-10-09 $1477
Sabra Health Care SBRA 44 $20.67 2017-10-25 $909.48
Celgene CELG 10 $95.45 2017-10-26 $954.50

 

Sells

none
 

Options

Stock Open Date Exp Date Type Strike Price Premium Fees Exit Price Closing Date P/L Annualized
UNIT 2017-10-03 2018-01-19 Put $15.00 $244.00 $7.00 $1.10 2017-10-26 $127 172%

 

I’ve added some shares to my new initiated position in Helmerich & Payne because I see the oil price stabilized and the oil price environment (demand/supply) more positive going forward. My portfolio is already very energy heavy, but I don’t just want to wait for the better times to see my underwater positions going back into the green, but I also want to take some opportunity here.

Same with the new position in Uniti, a communication REIT. From Bloomberg:

It operates in four business segments: Leasing, Fiber Infrastructure, Towers, and Consumer CLEC. The company engages in the acquisition and leasing of mission-critical communications assets, such as fiber, data centers, consumer broadband, coaxial and upgradeable copper assets

Highly speculative, because the biggest customer (70% of revenue) Windstream has a higher chance of going into bankruptcy. In hindsight I was way to early to jump the yield-sucker train. My original plan after my purchase was to add in the low 13s again, but this time I decided to try out selling a cash secured put. I was always reading about this strategy but never tried it myself. As this is a highly speculative position I also wasn’t to eager to add again, so I decided to sell a slightly “in-the-money” Put instead, which also would result in an even lower price: $15 (strike price ) – $2.44 (premium) = $12.56. I also added an order to close the option at $1.1 which already happened yesterday. Subtracting the fees (2x$3.5), I made $127 in 18 days. I will continue to evaluate the use of option writing, but I still need a lot of practice (no experience in selling covered calls and rolling options).

I also initiated a new position in CVS Health, a dividend contender with 14 years of an increasing dividend. I like the dividend yield (2.71%), the payout ratio (39.84%) and the difference from the historic dividend median yield from the last 13 years (1.18%). The price was driven lower because of the rumor about amazon entering the pharmacy space. Yesterday it was confirmed. Additionally I read yesterday that CVS wants to buy Health insurer Aetna (AET) for $66B. I have to read further details, but just by the look of the market cap of CVS (74.524B) the news itself will be a material change in valuation of the company (in every aspect). I’m curious to see the details of this offer and how the market will react to it. But I’m sure I’ve to evaluate the position again.

I’ve added 44 shares to my Sabra Health position. In August I wasn’t sure what to do with the CCP / SBRA merger. In the meantime Sabra was busy and I like all of the actions of the management (Enlivant and TPG acquisition, disposing its entire Genesis stake, capital raise through share offering and not taking new debt). This will result in a slightly lower guidance for AFFO, but with a much better diversification and risk profile. This could also lead to additional credit upgrades. I also consider adding below $19 or maybe writing another cash secured Put.

My last update includes a new position in Celgene which I initiated yesterday on the legendary -21% intraday drop caused by a slightly reduced guidance. Celgene is a biotech company which unfortunately doesn’t pay a dividend. However, I’m watching CELG for a long time and wanted to add it to my portfolio before as I’m a fan of biotechs and healthcare in general.