Current Watchlist

In the last couple of weeks the stock market set one all time high after another, the Dow Jones is currently almost at 21,000  and it does not look like that the rally wants to end. Most investors are happy with that never ending rally, but for us dividend investors it is not best time as cheap stocks are hard to find. Currently only the retail sectors seems to be undervalued, with Target trading at around 54 USD and Kohl’s trading at around 40 USD. Both are offering an attractive yield, but even though I considered Target as a further investment lately, I will not invest in this sector in next couple of weeks. Especially as Target is my largest position, I decided to stay on the sideline until the next earning release.

What other investments possibilities are currently out there?

As you all know my portfolio has an USD overweight but I am currently keeping my eye on the European market. Unfortunately this market isn’t much cheaper either. Considering that I decided to finally invest in ETF’s, something I wanted to do for a long time, but there was always a possibility to invest in high quality companies. So I ended up investing in single companies than in an ETF.

Which ETF am I considering?

I have two ETF’s on my list the first one is iShares EURO STOXX Select Dividend 30 UCITSETF (SD3EEX:GR) which is currently trading at 20.56 EUR and based on the last years payouts of 0.95 EUR yielding at 4.63%. The total fond volume is at 664 Mio EUR, which is not that large but still okay. As you probably have seen at the name of the ETF, it is one from Black Rock.The largest position are the followings:

source: ishares.com

The second ETF is a similar one and also from Black Rock. iShares STOXX Europe Select Dividend 30 UCITS ETF (SD3PEX:GR) is currently trading at 16.91 EUR and based on last years payouts of 0.75 EUR yielding at 4.44%. The total fund volume is 493 Mio EUR, so also not that large. The largest positions are the following ones:

source: ishares.com

Conclusion

Based on the companies listed in the two ETF’s I  would tend to invest in the first one, as there are companies in the portfolio, I am much more familiar with like BASF, Allianz etc.. When looking at performance of the last five years the ETF is currently not overpriced and also considering the yield definitely worth an investment.  At a certain point I have to start to invest in ETF’s as well. My opinion is that ETF’s are a very good addition for your dividend portfolio.

After all I probably will buy 140 units of the first ETF. This will add about 90 EUR to my annual income, so I will have forward annual income of around 1 272 EUR.