This week I bought 50 shares of Flow Traders at a price of €32,44 per share. Current yearly dividend is €0,65 per share so with this purchase I add €32,50 to my yearly estimated dividend income.
Flow Traders is liquidity provider specialized in exchange traded products. I bought the shares of this company, because I expect that they will continue to benefit from the current volitility on the stock exchanges. The income of Flow Traders is mainly the spread between the bid and sell rate of exchange traded products. Due to the recent volatility in the market the first quarter net profit increased from €13,6 million 1Q17 to €109,7 million in 1Q18. This and EPS of €2,36 which brings the PE ratio just based on the Q1 results on 13,7.
I expect that the stock exchanges stay volatile for some more months at least and expect Flow Traders to be a good addition to my share portfolio. Although this stock will be cyclical and EPS will vary a lot based on volumes on the various exchanges where Flow Traders is active.
Yield on cost with the current dividend will be 2,00%.