This week was pretty tough for me. At work I had a full-packed agenda with back-2-back meetings and in the evenings I had hardly time to look after myself.
Family life can be quite demanding at times!
The good thing is, a curious mind is always thinking which means that I have more than enough content again for this week’s blog-post.
Having said that, enjoy the 5 bullets from this week!
#Nestle #DSM #Hufvudstaden #PepsiCo #Ahold #AndrewYang #YangGang #CharlieMunger #LegendaryInvestors #EuropeanDividends
5-Bullet Sunday is a weekly blog post with 5 topics that were on my mind this week related to Financial Independence and Dividend Growth Investing or something that just fed my curiosity. An overview of other earlier posts can be found here
🌟 European dividend increases
Earnings keep coming in from the European Dividend Champions and this is also the season that most companies announce their dividend increases. Let’s have a look at some of them:
Nestle ($SWX:NESN) announced a dividend of 2.70 CHF. This is an increase of 10.2% compared to previous dividend and marks the 25th consecutive increase.
DSM ($AMS:DSM) announced a dividend of 2.40 Euro. This is an increase of 4.3%. This is pretty decent knowing that they increased their dividend the previous year with 24%.
Hufvudstaden AB ($STO:HUFV-A) announced a dividend of 3.90 SEK. This is an increase of 5.4% and marks the 19th consecutive dividend increase.
Let’s also look a bit outside of Europe, because PepsiCo ($NASDAQ:PEP) also reported their earnings.
PepsiCo reported a 3.9% increase in FY 2019 GAAP revenue and an EPS of $5.20, which is a slight decrease from last year numbers when comparing to their core EPS numbers.
PepsiCo also announced a dividend of $4.09 per share. This is an increase of 7% and I am just amazed by the consistency of this company. It feels like clockwork financial management!
PepsiCo is a stock that I own a small initial position in and one that I would like to build out into a Tier 1 core holding.
Koninklijke Ahold Delhaize ($AMS:AD) reported Q4 and FY 2019 earnings as well this week.
Ahold is a Tier 2 core holding of mine and I own already a ~50% envisioned position-size in the stock. I bought most of it when most of the retailers were down due to Amazon entering the retail market back in the summer of 2017.
Ahold reported some pretty amazing numbers for a stable and slow-growing company. Revenue went up by 2.3% to 17.4 BLN Euro and EPS went up by 5% to 1.71 Euro.
That’s not all, because it also announced to increase its dividend to 0.76 Euro per share which is an increase of 8.6%. Owning this stock has done me very well and the yield on cost for me is already 4.51%.
For me this is a good example of where I was able to buy an undervalued stock with a lot of dividend growth potential. The evidence is in the numbers!
PS: Hit the “like” button if you would like me to do some further analysis on this stock in one of the upcoming weeks.
🌟 US 2020 elections
I must confess, although I am not that engaged in politics, it was quite sad news for me that Andrew Yang decided to quit his campaign to run for president. If you don’t know him yet then I encourage to watch his interview with Joe Rogan on YouTube.
Effectively he is mostly known as an outsider candidate who was proposing a $1000 USD per month in Universal Basic Income. He believes that the 4th industrial revolution is going that quick, that it will be hard for society to adjust at the same pace and therefore this will have a very strong impact on the workforce.
His UBI proposal (or as he calls it “Freedom Dividend”) should soften the impact of automation and create a “trickle up” economy by putting money directly in peoples hands.
It was not so much his (innovative) proposals that he was suggesting that inspired me, but rather his way of thinking (#HumanityFirst) and his diagnosis of the existing problems which I believe are spanning beyond the US.
Therefore, in my opinion it is very sad that he had to drop out and I do hope that some of his ideas will be adopted by the next president of the US, because that might inspire our European leaders to follow and implement some of them over here.
In the end, isn’t the journey to achieve FIRE something similar in its ideology as the Freedom Dividend? Just the road to it and the underlying justification might be different. At least the same ideology was similar that triggered me to start Dividend Growth Investing.
🌟 The legendary Charlie munger
I love learning from investors and I can genuinely say that Charlie Munger is among one of my favorite top-5 investors.
It doesn’t happen that often over the last several years that you can hear him speaking for more than an hour all by himself. So if you are interested, enjoy the watch! It’s a high dose of life-lessons again 💪
This was it for the week. and I hope that you enjoyed this week’s 5-Bullet Sunday.
Hit the like button if you would want me to do a stock-analysis of Ahold Delhaize in one of the upcoming weeks 🔍
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For now, have a great Sunday!
I’m not a certified financial planner/advisor nor a certified financial analyst nor an economist nor a CPA nor an accountant nor a lawyer. I’m not a finance professional through formal education. I’m a person who believes and takes pride in a sense of freedom, satisfaction, fulfillment and empowerment that I get from being financially competent and being conscious managing my personal money. The contents on this blog are for informational and entertainment purposes only and does not constitute financial, accounting, or legal advice. I can’t promise that the information shared on my blog is appropriate for you or anyone else. By reading this blog, you agree to hold me harmless from any ramifications, financial or otherwise, that occur to you as a result of acting on information provided on this blog.