Current Watchlist

Hey guys in the last couple of weeks the stock market set one all time high after another, the Dow Jones is currently almost at 21 000 Points and it does not look like that the rally seems to end. Most of the investors are happy with that never ending rally, but for us dividend investors it is not best time as cheap stocks are hard to find. Currently only the retail sectors seems to be undervalued, with Target trading at around 54 USD and Kohl’s trading at around 40 USD. Both are offering an attractive yield, but nevertheless and even though I considered Target as a further investment lately, I will not invest in this sector in next couple of weeks. Especially as Target is my largest position, I decided to stay on the side line until the next earning release.

But what other investments possibilities are currently out there?

Well as you all know my portfolio has an USD overweight I am currently having my eye on the european market. Unfortunately this market isn’t that much cheaper either. Considering that I decided to finally invest in ETF’s, something I wanted to do already for a long time, but there was always a possibility to invest in high quality companies. So I ended up investing in single companies than in an ETF :).

Which ETF am I considering?

I have two ETF’s on my list the first one is iShares EURO STOXX Select Dividend 30 UCITS ETF, which is currently trading at 20.56 EUR and based on the last years payouts of 0.95 EUR yielding at 4.63%. The total fond volume is at 664 Mio EUR, which is not that large but still ok. As you probably have seen at the name of the ETF, it is one from Black Rock.  The largest position are the followings:

Black1

source: ishares.com

The second ETF is a similar one and also from Black Rock. iShares STOXX Europe Select Dividend 30 UCITS ETF, is currently trading at 16.91 EUR and based on last years payouts 0f 0.75 EUR yielding at 4.44%. The total fond volume is 493 Mio EUR, so also not that large. The largest positions are the following ones:

Black2

source: ishares.com

Conclusion

Based on the companies listed in the two ETF’s I tend to invest in the first one, as there are companies in the portfolio, I am much more familiar with like BASF, Allianz etc.. When looking at performance of the last five years the ETF is currently not overpriced and also considering the yield definitely worth an investment and at a certain point I have to start to invest in ETF’s as well. My opinion is that ETF’s are a very good addition for your dividend portfolio.

After all I probably will buy 140 units of the first ETF. This will add about 90 EUR to my annual income, so I will have forward annual income of around 1 272 EUR.

Disclosure: I do not recommend any decision to the reader or any user, please consult your own research. Thank you for your understanding.

1 Comment

  1. It has been difficult to find a good deal in the market. I decided to pick up VFC this week as its been the best in terms of valuation. Target is looking attractive at this price point but remember JP Morgan set the price @ 50 a share which is still has a lot of room to drop.

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