Christmas Eve, Christmas Ham and Mulled Wine! What could be a more appropriate moment to go through the notified dividend cuts of my portfolio holdings during this year.
At the moment, my portfolio contains 47 shares from different companies, of which 5 have announced dividend cuts or temporary interruption of the dividend payments. Moreover, if commodity prices remain at that level for a long time, for me, it shouldn't be a big surprise if some other in my portfolio companies, announces the same things.
Let's look more closely notifications of these five companies press releases.
Press Release June 5, 2015 - Baxter International Inc.
- Baxter's Board of Directors Approves Separation of Baxalta and Declares Special Dividendof Baxalta Stock
Press Release October 28, 2015 - TAL International Group, Inc.
Press Release November 5, 2015 - Prosafe SE
Press Release November 26, 2015 - NCC AB
- NCC is planning to distribute NCC Housing to shareholders in 2016 in accordancewith the rules of Lex ASEA. In the event of a spin-off, NCC’s shareholders willreceive shares in the new housing development company instead of cash dividends
Press Release December 8, 2015 - Kinder Morgan, Inc.
- KMI expects to declare dividends of $.50 per share for 2016 and use excess cash to fund growth investments
Let's look next the numbers.
Baxter's and NCC's announcement is not actually a dividend cut, but I take it as such, because it reduces my dividend income.
As calculation shows, my forward annual dividend income will decrease by approximately one thousand euros, a percentage decline of about 6.7%. When I take into account the dividend tax 25.5% my net dividend income will decrease by around 745 Euros.
As I mentioned above, I wouldn't be very surprised if similar notifications will come more over the next year related my portfolio companies like GLNG, OKE and the COP.
On the whole, I am very satisfied with my dividend income in 2015 (I will come back to that later), but I can say that without these few unpleasant news, the next year would have looked a lot better.
Full Disclosure: Still long BAX, BXLT, TAL, PRS, NCC, KMI, GLNG, OKE, COP
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