Portfolio Update

august_update

It’s been a while since I’ve updated my Blog in March. Here are my latest updates since then:

Purchases

Company Stock Units Price Date Cost
STORE Capital STOR 100 $20.35 2017-05-09 $2035.00
Washington Prime Group WPG 200 $7.97 2017-05-12 $1594.00
Novo Nordisk NOVC 50 €35.08 2017-08-08 €1753.85
Altria Group MO 20 $63.39 2017-08-24 $1267.8

 

REITs did get cheap in May and I bought STOR and WPG. There were some more on my list, but they didn’t quite reached my buy zone (but all were very close to it). STORE is my substitute for O(also on my list) which seems always too expensive for me. In many aspects STOR has even better metrics, so I choose to buy it instead of O. Since Warren Buffett also decided to buy STORE, the price got a big lift and now I’ll have to wait a little longer to increase my position.

WPG on the other side was just too cheap to ignore. Still plenty of room to cover the big dividend, I bought a small position. But I didn’t expect it to rise so quickly, so I sold it two months later for a nice gain of $274.00 (17,2%) including the dividend. Long term I think SKT or even SPG are better positions in this declining sector for me. But I’m always open to some opportunities.

I’m a big fan of Novo Nordisk and bought another batch just before the latest report which lifted the stock quite a bit. I also managed to catch the dividend with this buy (DKK 300 in August). If the price will dive again to the lower 30s I will most likely continue to accumulate.

And today I started a small position in Altria (MO) and I’ll also continue to accumulate if it falls any lower (which seems most likely at the moment).

Sells

Company Stock Units Price Date Total Gain
Washington Prime Group WPG 200 $9.09 2017-07-24 $1818.00 $224.00 + $50

 

Portfolio News

In the meantime CCP got acquired by SBRA which will change the dividend rate. I’m still not quite sure what to do with it, but until then I’ll get paid even though the new yield is a little lower.

TIS stopped paying the dividend completely and I moved the position into my “speculative portfolio”. It’s still not sold and way under water(-55%). Not one year ago it was nearly the same amount, but the other way around. Again I’ve to blame myself for ignoring the payout ratio, not reading the quarterly reports and generally ignoring the rule “less market cap means more babysitting/risk”.

2 thoughts on “Portfolio Update

  • September 5, 2017 at 2:31 am
    Permalink

    Nice to see this update. At least you have been continuing making buys since March. Many have stopped buying altogether and even sold out of their portfolios. Like you, I plan to keep my SBRA for now. Of course, my original investment was in VTR and I never would have considered buying SBRA but I’ll be a holder.

    Reply
    • September 5, 2017 at 9:41 pm
      Permalink

      Thank you for your comment and support DivHut!
      I understand the reasoning behind this cautious approach, because eventually the market will pull back.
      But I can only speak for myself and my course of action is to continue to search for attractive opportunities (like GILD, NVO or STOR). When you take some stocks (i.e. retail and food sector) it’s already looking like a correction. So why should I wait and not starting today with a small position and increase them over time? Right now my cash position is already significant (relative to my portfolio size) and it will increase over time until I see more bargains. To build this confident mindset is my real task, which I try to work on as hard as I can. I see the building of my portfolio more of a result of this.

      Regarding SBRA: at least we got a credit upgrade to BBB- which will lower the cost of capital which in turn will fuel more (dividend) growth. I don’t think waiting and collecting near 8% yield is a bad thing to do.

      Reply

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