Recent buy #2 – TKM & BP

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

kaubamaja_gruppAfter 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.

bp_logo_160810_mainThen 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.

2 thoughts on “Recent buy #2 – TKM & BP

Add yours

  1. Hi,

    have you considered using Revolut for purchasing BP? It’s free of charge for the first three transaction per month, I believe.

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    1. Hi, HF. Well I wouldn’t be too excited about Revolut free share purchases. These are virtual shares you own. Legally they belong to Revolut. If it goes bankrupt bye bye shares. If my bank bankrupt my shares goes to other broker that takes over the portfolio. I know these are not cheap, but i prefer safety over few EUR 🙂 Since my strategy is to buy and hold, paying few EUR or USD for purchase pays off after one year at max.

      Like

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