Month: November 2015

I’ve been waiting to add on various cyclical companies but BHP Billiton has been taking extra beating lately due to various problems. Latest one was the collapsing of a dam in Brazil in a mine co-operated with NYSE:VALE. It’s tragic but also hopefully a one time indecent that has very little to do with the company itself. Sure there are risks involved with this purchase. Cleaning up this mess can cost anything from tens of millions to hundred millions dollars. On top of that there’s the overall economic situation which alone is a real risk for the dividend. Then again the long term fundamentals haven’t really changed. Having said that, today I bough additional 50 shares for 26,93 USD per share which brings my total up to 110 shares.

Additional information: http://seekingalpha.com/article/3665126-bhp-vale-samarco-dam-failures

As anticipated, balancing positions continued with NYSE:VER (formerly NYSE:ARCP). Troubled company in transition process and my only truly speculative position. On November 6th I bought additional 130 shares for 8.18 USD per share. I still doubt that I would build a full position on VEREIT but the jury is still out on that one. Interest rate issues will play a significant part here but I ended up with a target value in the neighbourhood of 9.90-10.10 USD per share. That’s just a side note though as my primary focus is on the dividends.

One view on the matter: http://seekingalpha.com/article/3657246-net-lease-reit-vereit-continues-to-execute-on-investor-day-blueprint