Investing in Water-Recent Investment August 2017

Hey guys it has been quite a while since my last post and my writing activity slowed down a little bit, but yeah it is summer :). Well nevertheless I am still busy with investing in stocks, ETF’s, p2p lending etc. Although I said for the rest of the year I will concentrate more on investing on ETF’s I invested again in european company.

My last investment does not really fit into my dividend strategy, although the company has a dividend yield of 4.1% I bought with another purpose. As you maybe from a last year’s post I am constantly looking how can invest some money in water stocks, my first investment was California Water Service but I was just too inexperienced with investing so I sold it after a decline (big mistake but yeah whatever). Since that I haven’t sold one stock. But let’s come back to investing in water stocks. The big problem is that they are very expensive currently and it is hard to find some cheap stocks.

Nevertheless I came across a french company called Veolia Environment. It provides environmental management services. The Company’s services include water supply, treatment and recovery of industrial effluent, waste collection, processing and recycling. It was founded in 1853.

Currently the company pays a yearly dividend of 0.80 EUR per share and based on a share price 19.54 EUR it offers a decent yield of 4.1%.

All in all I have purchased 75 shares at a price of 19.54 EUR. This investment will add 60.0 EUR to my annual dividend income before tax.

My new dividend Income
Before taxes my projected full year dividend income is now at 1 988.58EUR with a yield on costs of 3.83% and after taxes it is at 1 416.02 EUR with a yield on costs of 2.73%. That is an average of 118.01 EUR per month. This is still not a huge number but compared to where I was a year ago this number feels really great.

Conclusion

As I said I did not buy this stock because of the dividend it is a nice side effect. The main reason for the investment is, that I am constantly looking for fairly price water stocks, as I convinced that these companies will be a really good investment for long term. Water is natural resource which gets less and less but at the same time everyone needs it. Actually it is one of the most important natural resources on the planet. Other companies I am looking for are the two british ones Pennon Group and Severn Trent.

What do you think about investing in water stocks? Do you also have it in your portfolio or are you considering buying it?

Disclosure: Long Veolia

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

3 Comments

  1. Hey DC,

    thats a nice addition to your cashflow. Until now i had never heard of Veolia but i thought about water investments too. American Water Works for example. couldn’t convince myself to pull the trigger yet, maybe in the future.
    Right now i’d love to buy PepsiCo, Roche, CVS, Starbucks, Welltower, Munich Re and so on. The strong Euro helps when buying US stocks…
    Your annual dividend income looks great!!

    Best Regards,
    DividendSolutions

    • Hi DS,

      Water stocks are currently not very cheap, American Water Works is a great company but not at its current price. Through the recent dip in the last 2 days, there are again some interesting companies on my watch list.

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