A introduction to my income portfolio, this post will be published on my blog FrugalFinn tomorrow.
In total the portfolio performance is very flat, but that does not concern me too much since I am a dividend investor. Falling share prices is when I thrive, purchasing cheap shares and getting a nice yield. The shares provide us with 593,97€ ($813,7) of passive income according to the current dividend payments. I have chosen companies that have a track record of increasing their dividend payments each year and I expect a dividend income increase in the high single digits or low double digits.
So far the dividend income is enough for me to pay for rent and utilities for one month out of the year, with our current expenditure of 1075€ per month or 12,900€ per year, the dividends covers so far only 4,6% of our living expenses. When I add the 280€ we receive from the S-group co-op shares that we own in the mix the total passive income is 873,97€ ($1197,3) which covers 6,77% of our yearly expenditure, miles away from where we are going, but it is a good start.
It is unfortunate that the government of Finland has a high tax on dividends, I pay 25,5% in taxes on dividends received. If I was living in the U.S I would have to pay 15% (+ possible state taxes?) according to my understanding, or no tax at all if they were in a Roth IRA.
The next company I will be purchasing shares in is Nokian Tyres, a Finnish tire company that has been constantly growing its EPS and dividend, at the moment it yields 4,2%, the ex-dividend date is in April so I will be purchasing before that date.
I will be bringing updates as I add shares to my portfolio and about dividend increases from the companies that I own shares in.
Brief introduction to the different companies we hold shares in.
1. AT&T (NYSE:T)
" AT&T Inc. provides telecommunications services to consumers, businesses, and other providers in the United States and internationally."
We own 20 shares which pay us 20€ ($27,4) in dividends per year after taxes, the share performance is -6,54% since we purchased them.
2. American States Water Company (NYSE:AWR)
" American States Water Company, together with its subsidiaries, provides water, electric, and contracted services in the United States. It operates in three segments: Water, Electric, and Contracted Services."
We own 26 share which pay us 11,45€ ($15,7) in dividends per year after taxes, the share performance is +2,89% since we purchased them.
3. Apple (NASDAQ:AAPL)
" Apple Inc. and its wholly-owned subsidiaries design, manufacture, and market mobile communication and media devices, personal computers, and portable digital music players worldwide."
We own 3 shares which pay us 19,9€ ($27,3) in dividends per year after taxes, the share performance is +9,7% since we purchased them.
4. Awilco Drilling (OTCPK:AWLCF)
" Awilco Drilling PLC is a UK based Drilling Contractor owning and operating the two refurbished and enhanced mid-water semi-submersible drilling units WilHunter and WilPhoenix."
We own 80 shares which pay us 191,4€ ($262,2)in dividends per year after taxes, the share performance is -4,42% since we purchased them.
5. BCE (NYSE:BCE)
" BCE Inc. provides communications solutions to residential, business, and wholesale customers primarily in Canada"
We own 16 shares which pay us 19,57€ ($26,82) in dividends per year after taxes, the share performance is -5,61% since we purchased them.
6. BP (NYSE:BP)
" BP p.l.c. provides fuel for transportation, energy for heat and light, lubricants to engines, and petrochemicals products."
We own 16 shares which pay us 19,8€ ($27,17) in dividends per year after taxes, the share performance is +11,97% since we purchased them.
7. CMS Energy Corp. (NYSE:CMS)
" CMS Energy Corporation, through its subsidiaries, operates as an energy company primarily in Michigan, the United States."
We own 27 shares which pay us 15,85€ ($21,7) in dividends per year after taxes, the share performance is +2,19% since we purchased them.
8. CVR Energy Inc. (NYSE:CVI)
" CVR Energy, Inc., through its subsidiaries, engages in petroleum refining and nitrogen fertilizer manufacturing activities in the United States. The company operates through two segments, Petroleum and Nitrogen Fertilizer."
We own 16 shares which pay us 26,1€ ($35,76) in dividends per year after taxes, the share performance is -18,92% since we purchased them.
9. Coca-Cola Company (NYSE:KO)
" The Coca-Cola Company, a beverage company, engages in the manufacture, marketing, and sale of nonalcoholic beverages worldwide."
We own 18 shares which pay us 11€ ($15) in dividends per year after taxes, the share performance is -1,22% since we purchased them.
10.Gold Resource Corp. (NYSEMKT:GORO)
" Gold Resource Corporation engages in the exploration for and production of gold and silver in Mexico. The company also explores for copper, lead, and zinc."
We own 140 shares which pay us 9,1€ ($12,5) in dividends per year after taxes, the share performance is +14,15% since we purchased them.
We bought in to this position before GORO cut its dividend by over 50% because of the low gold prices, now that gold prices are rising again the stock price has risen but the dividend has stayed the same. I expect that GORO will be increasing its dividend payments again next year if the gold price stays constant around the $1320 level or keeps increasing.
11. Helmerich & Payne (NYSE:HP)
" Helmerich & Payne, Inc. primarily operates as a contract drilling company in North and South America."
We own 10 shares which pay us 13,6€ ($18,6) in dividends after taxes, the share performance is +24,39% since we purchased them.
12. IamGold Corp. (NYSE:IAG)
" IAMGOLD Corporation engages in the exploration, development, and operation of mining properties. Its products include gold, silver, niobium, and copper deposits."
We own 110 shares and it provides us with no dividend income at all. We purchased this position when IAG was still paying a dividend but it cut the dividend completely, since I am a dividend investor I wanted to liquidate my position but IAGs stock price had decreased so much that I decided to wait until they implement a dividend payment again or until the stock price rises enough that I can sell without a loss.
Share performance -37,46% since we purchased them.
13. LinnCo (LNCO)
" Linn Co, LLC, through its limited liability company interests in Linn Energy, LLC, focuses on the acquisition and development of oil and natural gas properties in the United States."
We own 50 shares which pay us 78,9€ ($108) in dividend income after taxes, share performance is +5,69% since we purchased them.
14. Orava Asuinkiinteistörahasto
Orava is a REIT operating in Finland, it owns and operates 16 rental properties. Orava is the most recent purchase in this portfolio, purchased only a few days ago on 14.2.2014.
We own 50 shares which pay us 41,7€ ($57,2) in dividend income after taxes, the share performance is flat so far.
15. Pan American Silver Corp (NASDAQ:PAAS)
" Pan American Silver Corp. engages in the exploration, development, and operation of silver producing properties and assets. It produces and sells silver, gold, copper, lead, and zinc."
We own 65 shares which pay us 17,7€ ($24,2) in dividend income after taxes, the share performance is +25,17% since we purchased it.
16. Seadrill (NYSE:SDRL)
" Seadrill Limited provides offshore drilling services to the oil and gas industry worldwide. The company operates in three segments: Floaters, Jack-up Rigs, and Tender Rigs"
We own 35 shares which pay us 72,3€ ($99) in dividends per year after taxes, the share performance is -14,87% since we purchased them. Seadrill is about to release its results on 25.2.2014 and I expect a big pop in its share price, Seadrill has been trading lower since analysts have taken a broad brush and painted a negative picture of the whole deep sea drill sector, not understanding that Seadrill has set itself apart from its competitors with its massive backlog of billions of dollars and the most modern fleet that exist on the market.
17. Wal-Mart (NYSE:WMT)
" Wal-Mart Stores, Inc. operates retail stores in various formats worldwide. The company operates in three segments: Walmart U.S., Walmart International, and Sam's Club."
We own 11 shares which pay us 11,2€ ($15,4) in dividends per year, the share performance is -2,54% since we purchased the shares.
18. Wisconsin Energy Corporation (NYSE:WEC)
Last but not least.
" Wisconsin Energy Corporation, through its subsidiaries, generates and distributes electric energy, as well as distributes natural gas"
We own 17 shares which pay us 14,4€ ($19,8) in dividends each year, the share performance is +1,65% since we purchased the shares.
Disclosure: I am long KO, SDRL, AWR, AAPL, IAG, GORO, AWLCF, BP, HP, WEC, CMS, T, BCE, CVI, LNCO, PAAS, WMT.