My May 202o purchase consisted out of 800 shares of the insurance group Aegon at a price of €2,453. As Aegon suspended their dividend it’s maybe a strange addition to my dividend growth portfolio. Aegon suspended their dividend just as many other European financials based on a request of the European Central Bank to keep liquidity within financial institutions while waiting to see what the impact of Covid-19 would be.
I base my purchase for a big part on the historic dividend of Aegon:
The graph above shows that the dividend of Aegon was fast above €0,20 after the financial crisis. I consider it realistic that Aegon will already start paying a dividend in the 2nd part of this year.
Based on a dividend between €0,20 – €0,31 the dividend yield based on my purchase price could be between 8% – 13%. As Aegon is normally has a payout of 50% the actual yield could be much higher as the retained profits will normally result in higher stock prices.
I understand that I maybe need to have some patience before dividend will be paid again close to historic levels, but based on the current share price in combination with historic dividends I’m happy to add some more stocks of Aegon to my portfolio.