A new buy for my Vrijheid Fonds, I added some extra Royal Dutch Shell.
The financial markets have been tumbling down last week, due to the Corona virus. So, what can a long-term dividend growth investor do? Of course, just be happy and be greedy when others are fearful. I still had some money left in one of my brokerage accounts, after receiving dividend. That gave me the opportunity to pick up some great stocks that were on sale.
First, I have bought some extra 3M. The maker of mask which are on high demand right now. For more information about this buy just read my post Recent buy – 3M Company – February 2020.
Last week I saw again a nice opportunity to buy a great company which I already own. A great company with a dividend yield of almost 8%. This together with the knowledge that this company has never lowered its dividend or passed on it since 1943. So, once again I pulled my buy trigger and I have bought some additional shares of Royal Dutch Shell A (XAMS:RDSA).
Purchase
On February 28th I bought 43 additional shares of RDS at €19.98 per share (incl. fees).
With this buy I added a little bit more than €47 (after taxes) of projected dividend to my Vrijheid Fonds for 2020. Now I own 444 shares of RDS, and this position produces € 634 ($700) after taxes in dividend income annually.
Again, a small step in my journey and one-step closer to my goal.
What do you think about my recent stock purchase? Are you buying anything during these market thumbling days or building up cash? Please let me know below.
Cheers,
Pollie
Disclaimer: I’m not a registered investment adviser, investment professional, brokerage firm or investment company. Readers are advised that information on the website is issued solely for information purposes and not to be construed as an offer or recommendation to buy, hold, or sell any securities. All information, opinions, and analyses included are based on sources believed to be reliable, but no representation or warranty is made concerning accuracy, correctness, timeliness, or appropriateness. Please consult with an investment professional before investing any of your money.
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Quite a big position for RDS in your account.I have smaller position maybe look into it.
I really love RDS. And is it smaller that 10%. And still going down in portion
I never catch a falling knife. Halfed my position in RDS at €23.5 and now waiting for a clear bottom to re-enter (probably around the lows of 2016), but it will depend on the technicals at that time.
When do you think that the bottom is reached?
the bottom is in when bad news does not negativaly impact the price anymore. Not sure whether we are there already. I would certainly wait till the next quarterly update and their business outlook at say 30$/barrel, which is half the amount they had in mind end of January. This will be brutal on revenue, free cashflow but also on gearing and reserves. The dividend will be under tremendous pressure by the simultaneous demand and supply shock.
Nice one, i love it!
It’s a huge position in my portfolio, but I wouldn’t mind still a little bit if the price hits 17.10 in the upcoming weeks (@ 10% yield)
Nice purchase! I’m also thinking about buying more Shell. I just can’t believe how low the share price has fallen.
Pollies –
I even may have to pick up an extra share or two, as the yield certainly is swelling big time!
-Lanny
Just secured a bunch of stocks at €14.61 – thanks Saudis!
Great! Nice price Gijs
Today they look even better. Bought 40 shares myself at 15.1 today.
Concerns about the dividend though, can they keep up their profit in this oil market? They need to keep investing in renewable sources of energy..
Wow that is a great price. And yes there is a bit of concern about the dividend. But the company is restructuring and shifting to more diversed income streams