The year is just a week old and I already did my first investment. Despite the year end rally of the Dow Jones and S&P reaching new all time highs, there are few stocks which still over a decent yield, are not overvalued and act at a stable and boring sector. Currently you can find those stocks especially at the utility sector. In this sector already have ED and SO in my portfolio. In the last week I added a PPL as my third utility stock.
PPL currently trades at 34.56 USD and offers a yield of 4.40% based on a dividend of 1.52 USD per share. The company has increased its dividends for the last 15 year and has still a reasonable pay out ratio of 63.9%. The last dividend increase was just at 1 cent which of course does not make it dividend growth machine but considering the current yield I can live with it.
Short Summary of PPL Corp
PPL Corp (PPL) is an energy and utility holding company that engages in the generation and distribution of electricity in the northeastern and western United States. PPL operates in four segments: Kentucky Regulated, International Regulated, Pennsylvania Regulated, and Supply. The company was founded in 1920 and is headquartered in Allentown, Pennsylvania. It also delivers electricity to the UK.
After all I bought 40 shares of PPL, which will add 60.80 USD to my yearly dividend income, considering a dividend rate 1.52 USD, before taxes of course.
My new dividend Income
Before taxes my forward full year dividend income is now at 1 470.28 EUR with a yield on costs of 4.01% and after taxes it is at 1 059.34 EUR with a yield on costs of 2.89%. That is an average of 88.28 EUR per month.
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.
What do you think about PPL? Do you also have it in your Portfolio?