This week Flow Traders did go ex-dividend. The interim dividend is up from €0,30 to €1,35 this year. This is increasing my estimated yearly dividend income with €52,50.
Flow Traders is a market maker mainly active in ETF’s. As a result of the high volatility in the market in Q1 the net profit increased a lot and due to the increased profit the dividend was increased. The Q1 net profit was up 705%. The volatility decreased a lot in Q2 and this results in less trading income. The half year net profit is up 386% from previous year.
I don’t consider Flow Traders a dividend growth stock, because it’s results are very dependent on the volatility in the market.
Yield on cost is 5,24%, but with current volatility I don’t expect this to increase. A decrease in dividend for next year is more likely. I bought this stock initially with the assumption to benefit from high volatility in Q2 also, but with the current relatively calm markets I have to reconsider if it’s worth holding Flow Traders, but at the same time it’s hard to decide if it’s a easy sell, because I of course can’t predict when volatility is comming back.