Change of investments – Sale BPY / Buy JNJ, MO, IGN1L, TVEAT

Sold 120 BPY share, bought 5 JNJ, 15 MO, 27 Tallinna Vesi and 25 Ignitis shares. Neutral result for forward dividends or 1 kEUR

AMy bank has sent be a letter that LPs will be charged with extra high fees due to some US tax changes. Sad but that means bye bye to BPY and its juicy dividends 😭 So lost -112 USD of post tax dividend income, gained 1.920 USD spare capital as sale price was 16,1 USD. Good news is that I managed to sale them with a profit as buying cost was 1.540 USD, so that makes it a +380 USD profit or nice 25%💰✌ Now where did we put the money:

  • Jonson&Jonson 💊 – picked up 5 shares for 144 USD. I wanted to increase this possition for long time now. JNJ was my first US investment back in 2017. With quarter 1,01 USD/share this adds +14 USD post-tax annual dividend. With 2,8% pre-tax yield and P/E of 22,7x looks a bit pricy, but I bought it in 2017 with 2,7% yield and 19,7x P/E so the price actualy went up together with dividends. EPS are a bit covid-19 impacted and should be higher in the future, so I find this a good buy with company to hold forever 🙂
  • Altria 🚬 – as price kept falling from 51$ that I bought MO in January was a sure candidate for more high yield income generator to compensate high BPY yield. Bought 15 shares for 40,1$. This high yielder brought me juicy +36 USD post-tax dividends. 8,6% pre-tax yield and P/E 9,3x with adj. EPS of 4.3$ is just too good even with murky future tobacco future. It will take up to 15 years for JNJ dividends to catchup and that not calculating dividend reinvestment and MO dividend increase.
  • Ignitis🔌 – as planned I continue to build up this local grid monopoly. This time I added 25 shares for 20 EUR a piece. This added +24 EUR post tax dividends. With 5,6% pre-tax yield and 14,5x P/E I consider this a good buy. Now I own round 100 number of shares and Ignitis is my 2nd largest position, so i will stop with them for now.
  • Tallinna vessi💧 – then theres the Tallinn water provider, who paid 1 EUR dividends last year, with cut on tariffs that might decline, but still should be 0,7 EUR or more, might be even same 1 EUR as company has stacked lots of cash. Bought 27 shares for 13,3 EUR. Under last dividend that brings us +23 EUR post-tax annual dividends. Pre-tax yield is 7,5% and TTM P/E 12x this looks like a good buy.

All in all these 4 purchases has made our forward annual dividend few euros over 1 kEUR mark after forced sale of BPY. Had to put 400 EUR additional capital, but I’m still at four digit zone and intend to stay there 😊


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