Birthday Present To Myself.

By | January 17, 2019

Today is my birthday! Although I don’t really celebrate it as it’s just my 27th, I thought to myself, I better buy myself a present! I bought some shares in MyState!

Now you might be asking what in the world is that? It’s a bank…. don’t get too excited. This bank is based in Tasmania which is a little island south of the mainland in Australia. It makes it money from loans and also from funds under management.

The above figure is of the loan book spread across the country. You can see that is mostly focuses on Tasmania and the Eastern states of Aus. Tasmania has seen solid consistent growth over many years and I hope for this to continue.

MyState had a fantastic year. Income, Net Profit, dividend, earnings per share and Funds Under Management are all up. What more could you ask for?

As you can see over the last 2 years the total book loans have increased. Personal loans have decreased slightly (not a bad thing) but overall Home Loans have increased (good).

As you can see in the figure above, the higher Loan To Value Ratio has been decreasing over the past two years. If you aren’t from Australia then you may not have heard that all banks were under investigation for risky loans among other things. I am glad to see that only 19.5% of all total loans made by MyState are over 80% LVR. This brings a lot more security to the bank and less risk. I have heard early rumours that some of the banks are closer to 40-50% geared towards 80%+ LVR. Now that is risky!

The dividend has been steady for many years but has recently been given a slight boost. I hope that this is the start of many small dividend increases. I think overall, this is a very solid dividend payer at ~6.35% + franking credits (tax) and should increase earnings per share over time and therefore pay a higher dividend over time.

At 6.35% yield this adds approximately $101.78 to my forward dividend and puts my forward dividend at $1007.93 a year! I have cracked the $1000 a year in total forward dividend payments. Yay, nice present to myself!

14 thoughts on “Birthday Present To Myself.

  1. DivRider

    Happy Birthday BHL! And you’ve got a nice present for yourself already 😀
    It’s always nice to hear something about foreign companies.

    I’m just curious, wouldn’t it be better to focus on high dividend growth stocks, considering your age? When I started with DGI investing, my main focus was the yield because of the instant gratification. Now, some years later, I’ve realized, that I’m giving away most of the compounding effect in the later stage of my investment journey. To visualize this issue for myself, I’ve added two new columns to my portfolio and watchlist spreadsheets where I track the yield of cost in 10 and 20 years considering the smallest growth rate of the last 10, 5 or 3 years. It’s amazing to see how low growth but high yield stocks loose steam very soon and get outpaced by high growth stocks. And on top, you’ve a high probability to see high capital appreciation too. Just a thought.

    Reply
    1. Buy - Hold - Long Post author

      Thanks for your thought Rider. I will take a look at your site for more info.
      Currently I like to invest in companies that I believe are growing and therefore will grow their dividend. This company has been stagnant a little recently but it’s earnings per share has been climbing consistently and I believe will do so in the future. Cheers

      Reply
  2. Frankie

    Happy Birthday BHL – hopefully MyState is a present that just keeps on giving for years to come 🙂

    Cheers, Frankie

    Reply
  3. Passivecanadianincome

    happy Birthday bhl!

    kinda cool hearing all this info on a unknown bank to me. Seems like a safe bank which is nice. That yield is pretty substantial as well.

    And to top it off you passed the 1k mark. Just awesome!

    keep it up and hope you had a great bday
    cheers

    Reply
    1. Buy - Hold - Long Post author

      I thought the yield was quite high as well. I really liked the look of this one. Slow growth but seemed quite steady and “stable”. As much as a small bank can be.
      Cheers.

      Reply
  4. Evan

    Happy Birthday! That is a fantastic present to yourself, at 27 I am pretty sure my present to myself was some more booze lol

    Reply
  5. DivvyDad

    Happy belated birthday and looks like you bought yourself a nice present! As PCI mentioned, it is interesting to see the details of a bank that I’ve never heard about.

    Congrats on surpassing that $1k milestone as well!

    Reply

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