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.
Today I purchased 26 shares Bayer against a price of €57,24 including costs. Bayer is down almost 50% to it’s 52 weeks high. Last month the stock price declined almost 20% after a U.S. jury found the Roundup weed killer to have been a substantial factor in a California man’s cancer.
I decided to start a position in Bayer to keep them for the long term and enjoy their divind of €2,80 per year. My yield on cost will be 4,89%. Bayer has many quality divisions, but the stock price is under big pressure due to legal issues regarding Roundup. Bayer acquired the Roundup brand as part of the merger with Monsanto.
My yearly estimated dividend income increased by €72,80 as a result of this purchase.
Yesterday I started a small position in software company Tableau (DATA). Tableau is offering software which is strong in data visualization. I’m using their applications myself and I’m extremely positive about the capabilities of Tableau.
As business controller I’m often working on turning data into information which supports making decissions. Tableau helps to turn data into visualized analysis which makes way more easier to understand the data than just sending some tables in Excel.
Tableau is already long on my watchlist, but I never spotted a serious dip to start a position. I’m now starting a minor position of 6 shares with a purchase price of $134,30 with the intention to increase this position in the future.
Tableau is not paying a dividend at the moment so my yearly estimated dividend income doesn’t change.
Today I purchased 5 shares of salesforce.com (CRM) at a price of $165.06. I have Salesforce on my watchlist for a really long time already and planned to buy it on a dip, but was never able to find a good moment to buy.
Because of the strong positions Salesforce has in CRM software I decided to start an initial position in Salesforce.com with the intention to increase this position further in the future.
Salesforce.com is not paying any dividend so my estimated dividend income will not change.