Recently BMW announced a reduction of their dividend by €0,50. The dividend got reduced from €4,00 to €3,50.
I own 30 shares of BMW so my yearly estimated dividend income declined by €15. Dividend got reduced in line with the profit development. Payout ratio over 2018 is 32% whereas the payout over 2017 was 30,3%
Based on the cyclical nature of the automotive industry I understand that BMW is a position in my portfolio where times of dividend growth can stop for some time, although I not expected a cut this year already. Based on the relative low payout ratio of BMW I assumed a steady dividend.
As a result of the dividend reduction my yield on cost will now be 4,87%. I hold this position in my portfolio.