Recent Investment May 2017

Being May almost half over I did my first investment this month and probably only one for May. Thanks to a almost trade free promo of my Broker I made a small investment in an austrian insurance company called UNIQA Insurance. I already had a small position in my portfolio but the still ongoing under valuation and the attractive dividend politic lead me to that purchase.

All in all I purchased 100 shares of UNIQA at a price of 8.07 EUR per share. Based on a yearly dividend of 0.49 EUR this makes it an incredible yield of 6.07%. This investment now adds 49 EUR before tax to my yearly dividend income. In total I have now 220 shares of UNIQA with a total cost basis of 1 655.96 EUR. As it is common for the german speaking area the dividend is paid once a year which will be in June. Uniqa increased this year the dividend by 2 Cents.

How much dividend income am I expecting in the future

Uniqa_Div

As you can see I am not expecting a huge dividend growth rate, but considering the current yield it is not such a big problem. Also the management said it will continue to stay at a shareholder friendly dividend politic by increasing it every year. Uniqa is now my third insurance company aside from Munich Rück and Old Republic International.

My new dividend Income
Before taxes my projected full year dividend income is now at 1 892.26 EUR with a yield on costs of 4.00% and after taxes it is at 1 353.39 EUR with a yield on costs of 2.86%. That is an average of 112.78 EUR per month. This is still not not a huge number but compared to where I was a year ago this number feels really great.

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

Looking at may project dividend chart, I just can say I am on the right track to constantly improve my yearly dividend income. Being into dividend investing for 2 years I have not experienced one dividend cut so far. This just proves that the selection of my companies is not the worst one so far. I do also know 2 years is not such a long period of time :).

Projected05-2017

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

What do you think about insurance sector? Do you also have some insurance companies in your portfolio?

Disclosure: Long UNIQA

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. That is a nice upwards trend in your graph, keep it up and you willsurely make your 2017 goal.

    I currently do not own any insurance stocks, but will take a look at UNIQA thanks to your post.

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