October Dividends and a Hostile Takeover

So all the dividends have finally reached my bank account and anything not set up for automatic dividend re-investment has been combined with some cash in my brokerage account and invested back into the MDZ index fund.

Single Stocks
Michael Hill $48.06
Meridian energy $149.20
Auckland airport $15.16
PGG Wrightson $56.95
Mercury Energy $88.88
Metlife care $8.15
Abano healthcare $24.27

Index funds (Smartshares)
MDZ $135.15
MZY $29.55
DIV $55.00

Total $665.37 (After tax has been paid!)

I love dividends, I love them soo much. It really feels like the only true passive income, I don’t have to do anything as long as the company does well I do well. Passive income is a magical thing and is an essential part of any financial independence or early retirement plan. I finally have money that is making me more money. You can read about how to buy shares and get started investing in the New Zealand share market in my previous post “So you want to buy some shares……”

Total Dividends for 2016 $1037.17

I’m pretty pleased with the dividends this year and its after tax too! Making a grand for doing nothing is a sweet deal. It doesn’t even seem real. It certainly makes up for the mild melancholy that takes over when the market is going into bear mode. I’ve stopped checking my portfolio on my breaks at work, I was obsessing and its better that I just chill and keep to the plan. $500 a month, every month invested into index funds. I’m keeping it simple from now on, no more single stock purchases!

The New Zealand Share market has been on a downward trend for the last few months, but I had one little bright spark. Abano healthcare become the subject of a hostile takeover on Friday afternoon and the share price jumped from $7.60 to $9.00 in less than an hour. It was pretty exciting to watch and word is they are paying $10 a share to try acquire 50.1% of the company. I’m not really sure what that means for a little minor shareholder like me, lets just say no one’s calling me on the phone to try buy my shares just yet, but it was quite a fun afternoon for an amateur investor.

 

4 thoughts on “October Dividends and a Hostile Takeover”

  1. QW4L, love your work there! What are your plans with the extra dividends? Can you use them as part of a DRIP (Dividend Reinvestment Plan) or maybe even some cheeky homebrews ๐Ÿ˜‰

    Exciting on the take-over as well, plans to take any profit off the table?

    Keep up the good work!

    1. Hi Jef, I add some cash to the dividends and re-invest into index funds. I hate cash sitting around doing nothing, bloody lazy dollars. I took some profits out last month when I sold half my Michael Hill holding, it had almost doubled in value. But I plan to hold the Abano shares long term.

  2. Hi, love the blog.
    Do you have recommendations on how you picked which Index funds you invested in?
    Were there certain checks you made or some formula used to pick MDZ, MZY, DIV?
    Any info would be great.

    Cheers ๐Ÿ™‚

    1. I picked MDZ to start with because I believed that the mid cap companies had more room for future growth. NZ is small and I thought that some of the top companies were pretty close to max market share etc. Now I have no idea if my thinking was right or not. It was just gut feeling. Later I diversified into MZY shares because I was worried all my investments were in NZ. Then I also started buying the DIV fund. I can’t say I’ve been too impressed with the DIV fund. As you can see I’m not a very analytical investor! With the index funds my main goal is to buy regularly and hold hold hold, re-invest all dividends. Time in the market is what makes the difference in the end.

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