June was an interesting month in that the Tech sector hit a rough patch, some IPOs had trouble getting out the door and financials had a second wind. Frankly I think a lot of the action had more to do with repositioning as some funds/traders’ positions didn’t perform as anticipated and are now playing ‘catch up’ during the last half of the year. The S&P ended the month up 0.48% while my portfolio recorded a gain of 1.44% largely on the heels of the bank CCAR results. For the first half of the year, I’m ahead of the index by 5.02%.
Headlines impacting my portfolio (bold are owned):
- 6/12 – HYH explores sale of surgical line (infection prevention)
- 6/12 – SBSI acquires Diboll Bancshares
- 6/14 – OUT acquires Dynamic Outdoor
- 6/23 – IBTX sells 9 Colorado branches to TBK
- 6/23 – CM completes PVTB merger
- 6/23 – Upon merger, POT/AGU to be renamed Nutrien
- 6/27 – V takes stake in Klarna
- 6/27 – XRX sells France research center to NHNCF
- 6/29 – MET spin finalized
- 6/30 – OCFC to acquire SNBC
- Added to KSU
- Added to CLX
- June delivered an increase of 31.84% Y/Y with, once again, the vast majority of the increase being attributable to foreign dividend cycles (larger, although less frequent). With one exception this should now be normalized.
- June delivered an increase of 12.4% over last quarter (Mar). The breakdown of the increase is:
- 37.4% replacement for TIS (which paid in April (late) and suspended the div)
- 36.2% April purchase for tax reduction
- 14.8% foreign cycle
- 11.3% purchases from dividends/dividend increases
- For the second month in a row, no new cash invested
- Declared dividend increases averaged 10.82% with 56.5% of the portfolio delivering at least one increase (including 2 cuts and 1 suspension)
- YTD dividends received were 59.58% of total 2016 dividends which if the current run rate is maintained would exceed last years’ total in early November
Note: My portfolio additions have begun migrating back to US equities as the weakness in the US dollar has been faster than I forecast. Unless geopolitical events occur to reverse this trend I suspect fewer foreign issues will be acquired.
MET has declared their spinoff – Brighthouse Financial (BHF) – effective August 4th. Holders as of July 19th will be entitled to 1 share for each 11 MET shares owned.
AGU/POT (Nutrien), SGBK/HOMB remain pending