Recent Investment

Hello everyone, as I wrote about 3 days ago I made my first investment in March and finally I invested the first in an ETF. I bought 140 Units of iShares EURO STOXX Select Dividend 30. It is the one which I preferred in my watch list.

The ETF shows an index composed of 30 stocks with leading dividend yields selected from companies in the Eurozone. Pay oust are fourtimes a year (January, April, July and October) and the current yield is at 4.62%.

In the ETF the sectors are weighted the following:

ETF_Sector

source: ishares.com

As you can see the biggest sectors are financials and industrials, the rest looks like a typical dividend portfolio just that maybe consumer staples are just the 4th largest sector.

After all I bought 140 Units at a price of 20.60 EUR, this makes it a yield of 4.62%. This will add 133.34 USD to my annual dividend income, considering the last year pay out of 0.95 EUR.

My new dividend Income
Before taxes my forward full year dividend income is now at 1 737.26 EUR with a yield on costs of 3.94% and after taxes it is at 1 257.72 EUR with a yield on costs of 2.86%. That is an average of 104.81 EUR per month. So I finally reached my first milestone to cross the average monthly dividend income of 100 EUR :). It took my a little less than 2 years until it got to that point. But when I review the last 4 months the snowball gets bigger and bigger and a lot faster as well compared to the beginning.

My goal until the end of 2017 is to have a dividend income of 1 400 EUR after tax.

Please be aware this might vary considering the changes in the exchange rate USD to EUR.

In the end I have to say that ETF’s areĀ  a very good addition to your dividend portfolio, and I am definitely will invest more in ETF’s in the future.

What do you think about this ETF? Do you also have some in your Portfolio?

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

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