Time for Shopping

We have 2 rough weeks behind us and while personally, I am optimistic about the next week, there is no certainty yet that there will be a recovery. Fundamentals didn’t really change much thus some people are very surprised to see what’s happening. While many companies got indeed a little overvalued in the recent months, when the correction set in some other good positions got dragged into the mess and have now again very reasonable valuations that would be a shame not to consider as opportunities.

So yes, I went shopping. Maybe a little early but trying to time the market usually goes wrong. If you see a good company at a fair price which you are willing to pay then there is in most cases no reason not to buy it.

One great buy that I added is a company which I had on my radar for a while now but which seemed a little highly valued: The US company “Gladstone Investment Corp.“. Its a BDC (Business Development Company) which is popular for mainly 2 things: It’s high dividend yield and for providing 14(!) annual dividend payments. Not only does it pay a monthly dividend, but it also adds twice a year a bonus dividend payment on top.

This is my second monthly dividend stock after Realty Income. People argue whether a monthly dividend is a real benefit or not, but it gives you a kind of good feeling knowing that there is something pouring into your account several times a year. If you got more dividend-paying stocks and even more which pay on a monthly basis, then you get something coming in even several times a month.

Furthermore, I added to my position on Wereldhave which is a Dutch REIT (Real Estate Investment Trust). The stock dropped together with the market AND because they also did cut the dividend by almost 20%. However, even after the cut, the yield is still excellent and the dividend payout happens every 3 months. I also believe that they will recover within 2-3 years and get back on track with the business.

Last but not least, I keep expanding my position in E.ON, one of the largest energy producers in Europe. A very solid company which is just about to finish its transition towards renewables, energy-blockchain technology and implementing consulting business to its business components. The shares suffered a lot over the recent years and I believe that now is the time to prepare for the rebound. On top, not only is the dividend stable, it is already confirmed that the dividend will grow by almost 50% next year and another 50% the year after.

There are some great opportunities now out there and some really great companies on sales. A perfect opportunity for new investors to jump on. For everyone else who is already in and now suffers losses – don’t panic! This is also a great opportunity for you to benefit from a cost-leverage-effect and to stock up your depot further. Your dividend yields will only increase and in 20 years you will be happy to have done that.

 

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