Future Investments


Hey everyone! I hope everybody has great Christmas holidays with their families. Yes, it is already Christmas I cannot believe this year passed by so quickly. Also between during the holidays I am thinking about new investments. Normally I would call that article Current Watchlist but as this includes 2 ETF’s in which I will definitely invest in the future I just named it Future Investment.

 

Deka DAXplus® Maximum Dividend UCITS ETF

This ETF is a high yield dividend paying ETF which mainly includes companies from DAX like BMW, Allianz, Müchner Rück and also companies which are not in the DAX like Telefonica Deutschland or Duerr AG. The reason I am looking at this ETF is of course the dividend and on the other hand it is still very cheap. Considering the year-end rally of all the Indexes.

Currently this ETF is priced at 82.27 EUR which is way behind its all-time high of around 104 EUR. In 2016 the total dividend was 6.06 EUR which makes it a current yield of 7.37%. The lowest dividend was in 2010 with 4.63 EUR.

Potential investment 30 pcs with a total investment of 2 468.10 EUR. The additional dividend income would be at 181.80 EUR before and 131.81 EUR after tax.

The dividends are paid quarterly and die Management fee is at reasonable 0.30%

Deka EURO STOXX® Select Dividend 30 UCITS ETF

This is another ETF with a very good yield and it includes companies from the EURO STOXX like BASF, Siemens, Unilever, AXA or Orange.

Currently this ETF is priced at 20.07 EUR which is a little behind its all time high of around 21 EUR. In 2016 the total dividend was 0.77 EUR which makes it a current yield of 3.84%. The lowest dividend was in 2015 with 0.71 EUR.

Potential investment 75 pcs with a total investment of 1 505.25 EUR. The additional dividend income would be at 57.75 EUR before and 41.87 EUR after tax.

The dividends are paid quarterly and die Management fee is at reasonable 0.30%

By these two investments, both will happen in the first 2 months of the next year, I want increase my positions in Europe. Currently my portfolio includes a lot of companies from the US. Also this two investments are my first ETF’s in my portfolio which will lead to an increasing diversification concerning sector, Shares vs. ETF and USD vs. EUR.

My yearly dividend income will furthermore increase to 1 200 EUR after tax, which finally makes it an average of 100 EUR per month.

By the way event though the Dollar is very strong at the moment I am still looking for companies in the US. Currently on my watch list is especially PPL Corp.

 

What do you think about these two investments? Do also have ETF’s in your dividend portfolio?

2 Comments

  1. Ciao Andreas,
    Nice picks! I wish I could easily invest in ETFs, unfortunately because of some stupid Italian regulations they are taxed differently from normal stocks, so every time I incur in a loss from trading an ETF I do not get to compensate losses with profits… 🙁 Still they are worth a check! Thanks for sharing and ciao!
    Stal

    • Hey Stalflare,

      yeah sometimes the tax policy can be real pain for private investments. I am just hoping Austria will not increase their taxes on dividends…

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