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 a 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 it with another purpose. As you may remember  from a post from last year I am constantly looking into how I 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 whatever). Since then I haven’t sold one stock. But let’s come back to investing in water stocks. 

The big problem with water stocks is  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 1 988.58 EUR 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 priced water stocks, as I am convinced that these companies will be a really good investment for long term. Water is a natural resource which is dwindling 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.

Print Friendly, PDF & Email

Related Posts