Eudividend @Eudividend: "Hello, WEEKLY UPDATE 🔆2024 WEEK 21 May..."

Lithuania

Edited

Hello, WEEKLY UPDATE 🔆2024 WEEK 21 May 27 – June 2 Uncertainties about interest rate cut caused a pause in the stock market rally last week. Concerns about higher for longer interest rates keep pressure on our interest rate sensitive portfolio as well. When interest rate headwinds dissipate this portfolio should outperform the market. Some of the portfolio companies use current low valuations to buy back own stocks. That reduces a dividend payout ratio and improves dividend safety. In the meantime, the economy is doing well. AI boom drives demand for communication, electricity power and data centers. That should benefit utility companies and REITs which are essential parts of the portfolio. Retiring baby boomers support the economy using services like travelling and healthcare. So far spending has not been hit hard by higher rates as meaningful part of companies and individuals have fixed low borrowing rates. The debt maturities and refinancing process will lead to an increase in borrowing costs in the near future. Recently in the interview to CNBC City bank Chief economist said that he expects recession in the second half of the year. Even so the jobs report was strong, within it both the number of hours that people are working and the number of full-time workers are going down. Companies are less eager to hire and jobs are getting harder to find. Also, credit card delinquencies are on the rise. Unemployment should start to increase and then a more material decline in activity should follow. In fact, he expects that inflation and the labor market will weaken enough that the Fed will cut rates four times. PORTFOLIO NEWS OF THE WEEK 💶Earnings Last Week (May 20 - 26) On May 22 UK insurance company $AV.L (Aviva) provided Q1 trading update highlighting a growth right across the Group. In Q1 general insurance premiums are up 16% over year, the company won 136 new pension schemes and Retirement sales are up 13%. Solvency II ratio is very strong at 206%. At the same time Aviva grows through M&A activity: in Q1 it acquired Optium 2 Holdings in Canada to strengthen its Canadian Specialty Line business; announced acquisition of Probitas, fully-integrated platform in the Lloyd’s market, to strengthen Global Corporate & Specialty business and acquired AIG’s UK Protection business. In its guidance the company intends to grow the dividend by mid – single digit percentage. At present Aviva’s dividend yield is 6.8% and the payout ratio is 89%. ☀️Ex – Dividend Dates The following Ex -Dividend Dates are expected this week. 🍓May 29 $YAR.OL (Yara International) Semiannual dividend of NOK 5 per share will be paid on June 6. Yield is 1.5%. Yara Intl pays investors based on the following criteria: - Net Debt / EBITDA should be in the range of 1.5 – 2.0 and Net Debt / Equity ratio below 0.6. - Dividend is 50% of net income. So, with a direct link to the amount of net income the dividends of this company have a cyclical nature. Last year in June it paid out NOK 55 per share with a dividend yield of over 16%. 🫐May 31 $AY (Atlantica Sustainable Infrastructure PLC) A quarterly dividend of $0.445 per share payable on June 14. The yield is 7.6%. 🍐May 31 $OBDC (Blue Owl Capital Corporation) A quarterly dividend of $0.37 per share to be paid on July 15. The yield is 8.3%. 🍒May 31 $SLG (SL Green Realty Corp.) A monthly dividend of $0.25 per share will be paid on June 17. The yield is 5.7%. 🍰Dividend Payments On June 1 ALE and ENB pay quarterly dividends. $ALE (ALLETE Inc) pays a dividend of $0.705 per share. The yield is 4.5%. $ENB (Enbridge Inc) pays CAD 0.915 per share with a yield of 7.3%. 👉Portfolio’s Top Stock Movers Last week the following companies belonging to our portfolio had the biggest stock price changes. Winners: ERIC-A.ST +4.8%, AY +3.5%, OHI +2.74% Laggards: WBA -11.8%, BMY -6.34%, -6.33% 📈Performance Last week the main sectors within the portfolio performed as follows. REITs are down 3.8%, Telecoms down 1.26% and Utilities down 1.23%. The portfolio is down 2% for the week.

7 Mentioned Show all