Dividends estimation update

Dear all,

I am now in position to give you an update on our dividends estimation based on 2014 results and distribution proposal of the companies on our portfolio.

On January 29th, I posted our first estimate (Dividends estimation), the net dividend expected was 21’101 CHF.

 I am very pleased to say that the amount will be significantly higher as most of the companies have decided to distribute capital gain or cash or even higher dividend, meaning free of tax. The blow table summarize the dividend per positions:

Number Title dividend per share Total dividends Taxes Net Net Return
10000 UBS 0.75 7’500 7’500 4.0%
4600 CS GROUP 0.7 3’220 3’220 2.4%
400 Roche 8 3’200 1’120 2’080 1.9%
5100 ABB 0.72 3’672 3’672 3.5%
7000 TansOcean 1.2 8’400 8’400 5.3%
1020 Swiss Re 7.25 7’395 7’395 8.9%
Total 18.62 33’387 1’120 32’267 3.89%

Which is an increase of 53% compared to our first estimation. But the biggest achievement in my opinion is a 13% increase of revenue compared to our 2014 dividends revenue, so I cannot tell you how HAPPY we are.

Main differences are:

  • Credit Suisse will distribute 0.7CHF per share vs. estimated 0.5CHF
  • UBS will distribute 0.25CHF supplementary capital return per share following completion of squeeze-out
  • Swiss Re will distribute 7.25 per share vs. estimated 6.62CHF

On the lower distribution compared to estimation is TransOcean that reduce their distribution. But at least as most analysts were planning TransOcean will distribute dividends.

The additional 11’166CH will allow us further investment and therefore more dividend growth for next year by around 400CHF considering the 3.89% net return percentage.

Hope you are in a similar situation and that your dividend revenues are continuing to grow, let us know where you are?

Cheers,

RA50

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10 thoughts on “Dividends estimation update

  1. RA50,

    Two words: holy hell!
    Insane amount of capital at work and an even better amount of dividends coming your way – great job.

    Here I am with my 5 shares of Roche compared to your 400. 😉

    Keep it up,
    NMW

    Like

    • Hi Joe,
      Thanks for passing by and leaving a comment.

      Yes it’s great news for 2015, but I am planning to have less next year as probably most of the companies will distribute ordinary dividend which are taxed at 35%.
      I am expecting a 10% drop vs. 2015 which will give us around 26-28K. Still good value. In 2017 am expecting a nice increase again considering that our baks share would raise significantly their dividends.
      So all in one continuous increase.

      Cheers,
      RA50

      Like

    • Tawcan,
      Yes, our portfolio can look sometime quiet un-diversified as we have a mix investment strategy (dividend income and capital gain).
      For example at the beginning of the year the portfolio was more diversified than now.
      But it will still be mostly in equities, I am looking at the moment to invest in Biotech equities fund, which seems to increase like there is no end. I will try to catch a dip in the market this year :-).

      Thanks for the comment and best regards,

      RA50

      Like

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