I just couldn’t sit on that pile of cash 🙂 Since my goal to have 5kEUR in cash was reached with a good margin of safety here was our last purchases of Y2019
After large investment into Baltic horizon Baltic REIT fund I decided to also increase my position in most successful Baltic investment – Tallina Kaubajama. Bought 58 shares for 8,9 EUR paying in total 518 EUR. With 0,71 EUR dividends / share this will bring us additional 35 EUR posy-tax dividends with juicy post-tax dividend yield of 6,8%. I love this company and it is traded for just 12,4 P/E. Dividend payout is close to 100% but with equity ratio of 43% and NetDebt/EBITDA just 1,2x (77/64) I think company should do ok keep paying such high dividends.
Then there was another investment in oil company. This time I went for European global player – British petroleum or just BP. 175 shares for 5,77 EUR/share in Xetra marketplace where purchase cost only 9,95 EUR so in total this purchase cost us 1.020 EUR. And I can benefit from regular 15% tax instead of 30% for US companies. This purchase will bring us nice chunk of 55 EUR dividend annual income post-tax and thats a 5,4% yield. BP is not the most shinny oil company with equity ratio of 35% and NetDebt/EBITDA 1,8x (59/32) but not the worst. I think this company should do fine in the future with its strong presence in gas sector and wast network of petrol stations + lets not forget strong presence in renewable energy.
I know these are risky high dividens yield investments with high risk of dividend cut, but I cannot go for companiea with 1,something% yield. So the lateat purchase of XOM and Baltic Horizon (+138 EUR) along with Auga bonds (+51 EUR) divestment of TGT (-16 EUR) and these two (+90 EUE) sum result from December transactions was +263 EUR. Y2020 is doomed for dividend income growth 🙂 Our forward annual passive income has reached never seen highs – 655 EUR or 55 EUR / mo.