Better late than never as they say. Life has been super busy both professionally and on a personal level as it typically is this time of year for me. I have multiple kids playing baseball and a daughter involved in dance so once I am done with work for the day I am usually dashing off to one more activities each evening. However, despite these times, the one great thing about passive income is that my invested capital keeps working with very little, if any involvement, from myself day to day. At most, I reinvest the passive income and allocate new capital to where I perceive the greatest value to be a few times each month. Below is the April dividend summary which reflects a favorable increase in YoY dividend income despite an ad hoc transaction that impacted the portfolio's income in April. See below for further details.
Many are familiar with the fact that DIS recently closed on its $71.3B purchase of FOXA's assets back in March. As a result, I did not receive the dividend for my FOXA shares that would have otherwise been received absent this transaction. As a result, nearly half of the unfavorable rate variance shown above is driven by this transaction, the other half if attributed to the still fairly recent dividend cut by GE. Despite the -8.8% unfavorable rate variance, the favorable volume variance of 27.6% more than offsets the rate impact resulting in a net YoY favorable dividend income variance of 18.8% - also highlighting the importance of diversification. The favorable volume impact was driven by the addition of four new positions initiated during the past year, namely, CPB, CAH, LEG, and PPL. For a while the valuation for LEG looked to have made a good recovery only to have recently come back down near my cost basis as a result of the China tariffs. If these tariffs on Chinese goods prove to be relatively short lived, I believe it would be worthwhile to add to this position.
Twenty-First Century Fox, Inc (FOXA) and The Walt Disney (DIS) Transaction
Moments ago, I published a separate post here outlining the impact of the $71.3B transaction between FOXA and DIS had on my portfolio. As a result, my position in DIS has increased substantially with the opposite relative impact on my FOXA position. What's more is there appears to be a new dividend schedule for FOXA going forward with next semi annual dividend of $0.23/sh for FOXA shareholders to be paid June 2019 (ex-dividend on May 17, 2019) as opposed to the pre-transaction schedule of paying dividends in April and October of each year. If FOXA maintains the six month spread between payments, the final 2019 dividend payment for FOXA shareholders will be in December 2019. In short, the unfavorable rate and volume impact of not receiving the FOXA dividend in April will be offset in a couple of months when FOXA June dividend income is reported and not to mention the significant favorable volume impact in the DIS dividend income that will be reported in the July 2019 dividend summary post.
2019 dividend income is looking good so far...let's keep it going!
Many are familiar with the fact that DIS recently closed on its $71.3B purchase of FOXA's assets back in March. As a result, I did not receive the dividend for my FOXA shares that would have otherwise been received absent this transaction. As a result, nearly half of the unfavorable rate variance shown above is driven by this transaction, the other half if attributed to the still fairly recent dividend cut by GE. Despite the -8.8% unfavorable rate variance, the favorable volume variance of 27.6% more than offsets the rate impact resulting in a net YoY favorable dividend income variance of 18.8% - also highlighting the importance of diversification. The favorable volume impact was driven by the addition of four new positions initiated during the past year, namely, CPB, CAH, LEG, and PPL. For a while the valuation for LEG looked to have made a good recovery only to have recently come back down near my cost basis as a result of the China tariffs. If these tariffs on Chinese goods prove to be relatively short lived, I believe it would be worthwhile to add to this position.
Twenty-First Century Fox, Inc (FOXA) and The Walt Disney (DIS) Transaction
Moments ago, I published a separate post here outlining the impact of the $71.3B transaction between FOXA and DIS had on my portfolio. As a result, my position in DIS has increased substantially with the opposite relative impact on my FOXA position. What's more is there appears to be a new dividend schedule for FOXA going forward with next semi annual dividend of $0.23/sh for FOXA shareholders to be paid June 2019 (ex-dividend on May 17, 2019) as opposed to the pre-transaction schedule of paying dividends in April and October of each year. If FOXA maintains the six month spread between payments, the final 2019 dividend payment for FOXA shareholders will be in December 2019. In short, the unfavorable rate and volume impact of not receiving the FOXA dividend in April will be offset in a couple of months when FOXA June dividend income is reported and not to mention the significant favorable volume impact in the DIS dividend income that will be reported in the July 2019 dividend summary post.
2019 dividend income is looking good so far...let's keep it going!
No comments:
Post a Comment