Portfolio adjustment

Dear FI seeker,

We would like to report some changes in our portfolio:

  1.  Sold our position in TransOcean (RIGN.VX), that was  not because the stock went up and we would have made capital gain, but RIGN will be delisted from the Swiss exchange and it’s performance is very low, not given dividend for the minimum next 2 quarters. Therefore we are not making money out of it. Ok, in this operation, we lost 61k compared to our buying price. I know a lot of people will scream out, but sometimes you need to take hard decision. This loss, is half compensated  by this year capital gain we made at the beginning of the year, so our net loss is 31k.
  2. Bought Novartis (NOVN.VX) Shares, Novartis is the largest pharmaceutical company by sales and have promising drug pipeline and very good dividend distribution.
    1. We bought 570 shares at 90.74CHF, it will add around 960CHF of net dividend next year.
  3. Bought LafargeHolcim N (LHN.VX) shares to average down our previous position and considering the next year dividend increase that will be proposed to shareholder (from 1.3CHF to 1.5CHF, 15% increase).
    1. We bought 1075 shares at 54.85CHF, which will average  down our buying price to 57.7CHF versus 62.5CHF previously. It will add around 1560CHF to our dividend distribution next year.

So, December, is not financially positive, but we are fully confident that the actions we took this month will pay in the future.

I will update our portfolio page very soon.

What about you, how December look like?

Cheers, RA50

UBS (UBSG.VX) and TransOcean (RIGN.VX) PayChek

Dear all,

Sseveral days without posting anything (shame on me), but the month of September has been a crazy one, you remember that I mentioned that I would change job (Job, functional move and salary increase), and it happened in September, I started to make the transition with the person I am replacing, therefore, I had 2 jobs to do.

Ok I will stop talking about that as it is not the objective of this article (next week, I will publish one about my functional move, especially the financial aspect.

Coming back, to the pay check from UBS and TranOcean, the first one is a big surprise, because, I was not expecting getting this dividend distribution, if you refer to the following post (2014 Final dividend distribution), you will read that UBS decided to make a special dividend of 0.25 CHF thanks to positive 2014 results and completion of the change in a new entity. At that time, I understood that we needed to have the shares at the ex-date to be eligible, and as we sold all our UBS to get a 7% financial gain or 12’300 CHF due the positive 2014 results announcement. But to benefit from share price drop at the ex-date we bought them back. What a nice surprise to see that  on the 18th of September our custody account increased by 2’525 CHF.

On the 23rd of September, we received the 2nd distribution of RIGN.VX which is 1050 CHF or 0.15 CHF per share considering the 7000 shares we own.

As you probably read, TransOcean will call an extraordinary shareholder meeting to propose the cancellation of the next 2 quarters dividend distribution considering the company situation due to the oil price. I am not very happy with that, but it is the risk we took in buying RIGN shares, I believe that in the future the share price will go up again and distribution will come back.

And you what is your situation?

Cheers, RA50

LafargeHolcim N (LHN.VX) Pay Check in shares

Dear all,

Good news for our portfolio, this week LafargeHolcim decided to reward their shareholder with a surprise dividend paid in shares. The distribution was 1 new share for every 20 shares, so with the 500 shares we bought on July 30th (Portfolio increase) we received 25 news shares at 0.0$ value. Therefore our average price reduce by 2.88CHF to 63.3CHF.

These 25 new shares will increase by 32.5 CHF based on the 2015 dividend. So it really a nice surprise.

Wishing you all a good weekend and hope that you received dividends in September?

Cheers,

RA50

RIGN Pay check

dear all,

We had the nice surprise to receive dividend from TransOcean (RIGN.VX) a distribution of 927 CHF. 

We forget that this company distribute on quartely basis like the US companies and not like the Swiss one.

Good surprise that complement our total dividend distribution and we can expect another of this pay check next quarter.

What about you any dividend in June?

Cheers, RA50

2014 Final dividend distribution

Dear all,

As mentioned on the 21st of May, we received our latest distribution from Credit Suisse (CSGN.VX) based on our actual portfolio.

Our total dividend pay check was 29’817 CHF vs. 32’267 CHF, some people will say that it’s a significant loss, but you will see below that it is the opposite and generated a additional net gain of more than 9’000 CHF.

So how can it be:

If you recall, we made a post related to our 204 estimated distribution on March 2, (Dividends estimation update), where we were expecting a total dividend from UBS of 7’500 CHF, this distribution included the 0.5 CHF per share as normal dividend and 0.25 CHF of special dividend for the shareholders that accepted the change of the UBS business model. To receive this special dividend, you must have the shares at the time of the change until the ex-date.

As UBS made a great 1st quarter announcement and the share took more than 7% in one day, we decided to sell our position to benefit of the generous capital gain of 12’300 CHF, this happened a couple of days before the ex-date and therefore, made us losing the special dividend for our 2014 dividend distribution.

Now you will ask us, and what is the financial impact of this change, refer to table below:

With Capital gain Without Capital gain Net gain Net gain (%)
Share sold 12’230
Normal dividend 5’000 7’500
Total gain 17’230 7’500 9’730 230%

As you can see, we made a net gain of 9’730 CHF or 230% vs. only the expected dividend, and on top we bought the same day 10’100 new shares, which is 100 additional shares compared to our previous position.

Including our bank transaction fees, we have now a selling price of 20.17 CHF. The closing price on Friday 22nd is 20.33 CHF therefore we already start making some gain.

In conclusion, we are very happy with our strategy to maximize gain where and when we can.

What do you think?

Cheers, RA50

CS (CSGN:VX) pay check

Dear all,

Finally the last pay check of the year for our portfolio, as you know in Switzerland the dividends are paid once a year.

So I finally decided to take the cash distribution instead of the dividend distribution (Credit Suisse (CSGN.VX): dividend or shares).

Today, we received our dividend check from CS (CSGN:VX), based on the 4’700 shares we own, we received a comfortable check of 3220.0 CHF, this dividend is free of Tax as it is a cash distribution.

At the end of the month, I will make a final summary of the dividends received. It slightly lower than expected and will the reason.

Cheers,

RA50

UBS (UBSG:VX) pay check

Dear all,

Today we received our dividend check from UBS (UBSG:VX), based on the 10’100 shares we own, we received a comfortable check of 5050.0 CHF, this dividend is free of Tax as it is a cash distribution.

If you remember (Portfolio decrease and increase), last week, we sold our entire position and made an important capital gain of 12’230.0 CHF, we directly bought the 10’100 shares, so this month with UBS, we made a net profit of 17’280.0 CHF

At the moment, we are going to keep this cash position until we have an investment opportunities.

How is your May dividend account?

Cheers,

RA50