January brought a few different things for me. A few purchases and one sale. I will go into this a little below why I sold. I don’t like to sell but I felt the possibility of a decrease was greater than that of the upside.
Share Purchases and Sales
- APN Property REIT (ASX:APN) +$63.05 a year in dividends
- My State Bank (ASX:MYS) +$99.19 a year in dividends
- Orora Lts (ASX:ORA) +$122.13 a year in dividends
- WAM Research (ASX:WAX) -$143.26 a year in dividends
Total increase of $141.11 a year in dividends. This is from additional funds utilized in my portfolio.
There are a few reasons why I sold WAM Research. One was that last year they were paying a little out of savings which is typically a good thing (cash in bank). Although, in saying that, that means they didn’t cover dividend payment. The second part, and the scarier part, is that it is looking more and more likely that the Labor Government will hold power in the next election and if that does happen you can most likely say good bye to franking credits if they can get it passed through parliament. Our franking credits are basically tax paid by companies – therefore, you do not have to pay tax on dividends – as simple as I can explain it. There are a few factors, but it is looking like some LIC’s (Listed Investment Companies) will have to be converted into LIT’s (Listed Investment Trusts) and therefore pay out all of their income – similar to a REIT. This will cause the dividend smoothing to be non existent and payout will be erratic. On top of that it is trading at 25-30% premium to NTA. Change it to a LIT and say goodbye to that premium as well. Too much risk for very little reward. That’s why I changed.
January 2018 I received $37.86.
January 2019 I received $44.77 – all money reinvested (no tax paid on these figures).
That’s an increase of 18.25%, wow, let’s keep that going all year!
Total Forward Dividend Income for the year is now sitting at – $1049.44.
Net Worth January 2019
Net Worth in December 2018 was approximately $57,687.41.
Net Worth in January 2019 was approximately $62,052.85 which is an increase of approximately 7.57%.
Overall a fantastic month. Let’s hope the smaller month of February can provide some nice results too. Cheers!