Investments with high dividend yield and relatively reliable dividends are attractive to many investors. A steady flow of dividends that is ticking in the portfolio, you do not need any imagination to come up with how you want to use. In this article I present three pieces of different investments with high and reliable dividend yield. There are companies with different operations and even different currency and the preferred stock and the latter three represent a kind of diversification. You would then be able to take them all three in a portfolio with other companies where they are relative to each other represents a diversification of risk.
Mobile operator Telia is known by most, even their adventures in the rest of the world. Since some time has Telia cleaned up in the company and a new strategy is developed where the interests of the east has been disposed of or is for sale. The business is focused more in Northern europe, which almost completely eliminates the risk of new bangs like mutskandaler mm has been for Telia in the east.
The dividend cut Telia just to the 2 crowns in annual terms, and from this level, one can consider the dividend sustainable. One can expect that the dividend is not lowered in the coming years. The estimates for Telia’s dividend is rising gently. The dividend which is divided on two occasions 1 penny each to be paid in april and October. If you purchase by October 20, so if you have the right to the dividend, then, on a dime. The valuation of Telia, is not challenging and only a little bit of faith on growth in the future may find it attractive to. Assuming that earnings per share within a year, lands in 3,5 sek, it gives the p/e ratio 11 about on the course around 39 dollars. Telia is likely to be no growth engine, but the payout should be reliable and act as a kind of cushion for the share price on the downside.
Acadian Timber is a major canadian forest products companies seen to maximize the surface area of 2.4 million acres. The revenue comes from timber and processed wood products. In terms of market value, there is no huge company with approximately 2 billion Swedish kronor, or 315 million canada dollars. Latest report is for quarter 1 and which exhibits a growth of 10% in the harvest against the previous year, which together with the good market prices lifted the EBITDA of 14%. The long-term objective is a payout ratio of 95%, while in the first quarter landed at 62 percent. Large space up to the goal may seem, but it is in line with expectations due to the seasonality of the business. The price of the products the company sells can vary with the demand but in the very long term should forest be a steady avkastare. In the course 18,83 USD is the dividend yield of 5.8 percent, and the dividend will be paid quarterly if 0,275 USD per quarter. The last three years, the dividend has been increased by 10 per cent per year on average. While it is not a guarantee of future increases inspire the hope in each case. The company itself testify of the good demand/sales and fair prices. Keep it in the itself it is not inconceivable that the dividend be increased next year also. You should be able to expect an unchanged dividend at least. For us Swedish investors form of foreign currency exposure a risk in the short term but in the long run evens it out. Over time, usually currencies go up and down, just the canadian dollar, however, has been less volatile compared with the US dollar. While the currency can be considered to be a risk is in a way a diversification of risk for the us with a majority of Swedish holdings in the portfolio.
Firm Partner is a Swedish real estate company with a very strong principal owner of Sven-Olof Johansson. A respectable and trustworthy financier and majority owner. The properties consists mainly of logistics/warehouse/production/office. Like most real estate companies are performing steady Partner good now, there are really good times for the sector. The equity ratio of the company is around 44 % (Adjusted in accordance with EPRA NAV) and the interest coverage ratio is just under 4 times. Firm Partner has about 1.9 million pieces of preference shares issued and which annually gives 20 kronor in dividends. In total, it costs the company approximately sek 38 million per year in preferensaktieutdelning. It is a very small part of the company’s management, which on a rolling 12 months is 630 million and which, according to the company’s objective shall amount to 750 million by the end of 2017. Preferensaktiernas dividend is a small part of the income from property management and preffkapitalet is a small part of the total equity. Very good properties when assessing the risk of the preference shares issued. The company’s CEO and major shareholder Sven-Olof recently bought about 25000 preference shares at a price of 326 dollars. The current rate of 337 sek is under inlösenkursen at 350 sek and gives a direct yield of 5.9 per cent. Dividends are paid quarterly of sek 5. Firm Partners preferred stock is a less risky and dividend should be regarded as very reliable. Redemption is not fixed to a specific date, but can be done anytime, but you should regard it as eternal and thus does not take redemption for granted.
Three different placements with a high dividend yield and the dividends distributed on several occasions over the year. Hopefully you will find them worth a closer look.
Before and at the publication of this article, I own no shares in the companies mentioned.
