Ok now lets go to most important topic of this blog – dividends. A month late but still lets move to numbers of Q2. And there was lots of changes here since Q1.
2020 Q2 Dividends:
One thing we can celebrate for sure is a record dividend income in a single quarter – 332 EUR. Sure this is a high quarter due to our annual paying Baltic stocks, but still there was never a quarter with over 300 EUR of dividend income and income from US companies are closing to 100 EUR/Q mark. Most of the growth +88 EUR was lead due to new purchases: TKM, BP, BPY, MO and WFC.
Latest turned out to be a bad investment as WFC announced dividend cut from 0,51$ to mare 0,1$ or by -4/5. Good news that amount is comparably small -5,4 EUR/Q. This was as bad as RDSA dividend cut by -2/3 that lead to our dividend decrease by -8,7 EUR/Q. Another decrease Baltic horizon that decreased their dividends. Here we lost -16,6 EUR/Q income. Big loss but I hope its temporary due to COVID-19. In total we lost 25 EUR/quarter dividend income due to last two cuts. WFC is yet to come in Q2.
Part of that was compensated by TKM +2,2 EUR and TVEA +12,3 EUR that raised their annual 2020 dividends compared to 2019. Also on a positive note some small increase in dividends from JNJ, PG and SO +0,2$/Q each.
As feelings are mixed due to mentioned 3 dividend cuts I think that Q2 was a good quarter. I’m sad only about RDSA and WFC deep dividend cuts, but im not selling them. Lets see how these two will work out in L/T perspective. These are still a viable business. Next quarter my last purchases SPG and BPY will pay, so dividends will continue to grow.
I don’t count SPG dividend decrease as a cut as I bought it with -50% cut expectation. Actual cut was lower from 2,1$ to 1,3$ or -38%. That’s more than ok for me keeping YOC at high 6,4% post tax. Next on the risk is BPY and BP with latest purchases done with YOC with over 10%. Lets see how these two will hold out. For now they are holding. Either way both of these companies should be ok in L/T perspective. I don’t mind dividend cut for 30-50% knowing the situation, but hope that this will not be a 66-80% like in RDSA and WFC case, which just hurt too much.
For now lets celebrate record quarter of dividend income 🙂
|Company||Dividends in EUR / (in USD / Change)|
|Tallinna Kaubamaja||118,8 EUR (+38,7 EUR / +2,2 EUR)|
|Tallinna Vesi||51,6 EUR (+12,3 EUR)|
|British petroleum||32,4 EUR (+16,8 EUR)|
|Baltic Horizon Fund||25,5 EUR (–16,6 EUR)|
|AT&T||18,2 EUR / (20,0$ / – )|
|Brookfield Property||15,4 EUR (+16,9$)|
|Altria Group||10,7 EUR (+11,8$)|
|Exxon Mobil||8,3 EUR / (9,1$ / – )|
|Verzon Communications||7,8 EUR / (8,6$ / – )|
|Kraft Heinz||7,6 EUR / (8,4$ / – )|
|Wells Fargo||6,7 EUR (+7,4$)|
|Southern||6,1 EUR / (6,7$ / +0,2$)|
|Royal Dutch Shell||4,5 EUR (–8,7 EUR)|
|General mills||4,3 EUR / (4,8$ / – )|
|Pfizer||3,8 EUR / (4,2$ / – )|
|American Electric Power||3,5 EUR / (3,9$ / – )|
|Proctor & Gamble||3,5 EUR / (3,9$ / +0,2$)|
|Jonson & Jonson||3,1 EUR / (3,5$ / +0,2$)|
|Total||332 EUR (+78 EUR) / (+88 EUR / +15 EUR / -25 EUR)|