Stable business with moat 😊

Thank you very much for all the good wishes and the first few comments on my project.

The first tranches have fluttered into the portfolio! As already announced, the focus is on high-quality, stable dividend payers.

The following key figures are evaluated

Dividend yield

Dividend continuity

Dividend growth

Quality of the company

You can also see 2 unrated stocks, one is Reality Incom, a REIT and therefore not rated with typical characteristics. Therefore "unrated" for me but a must have in a dividend portfolio.

On the other hand, NOVO, where I am betting on the quality and potential growth of the company, coupled with the current weakness of the share price. I want to take advantage of such (supposed) buying opportunities and give the portfolio a certain growth potential in addition to the dividend.

I did not get any execution on United Health Group and Philip Morris.

On Sunday, I will look at my watchlist again and see which stocks are currently correcting and possibly reaching a support level, or are correcting the last move in the uptrend and have a chance of continuing the trend.

Have a nice weekend. Enjoy your time off and let it rip...

hummel hummel...

$O (-0.59%)
$AWK (+0.15%)
$DHL (-0.54%)
$RIO (-0.02%)
$CVS (+2.52%)
$NOVO B (-0.2%)
$PEP (-2.56%)

Moin moin and a happy new year 2025!

I am building my pension on 3 pillars.

the state pension (after all, I have paid in a lot)

Rental income

Cash flow portfolio with dividends

I'm building up the last pillar from this year and I'm happy to take it with me on my journey.

The key facts in brief

I have earmarked EUR 150,000 for the investment. I currently have 100k with the broker and 50k in the call money account. There was already some interest in December and the first purchases started yesterday.

3% max per position = 4,500 EUR in 5 tranches of approx. 900€

12,500 EUR max. per month

Entry according to chart technique at support levels in an oversold environment.

So it will take at least 12 months until I have invested my cash.

The key figures mentioned above are guidelines and not set in stone. A position can also have an initial value of 4K or 5K. Dividends can be reinvested. But should build up a cash position for later crashes.

I am curious to see how the project will go.

I would be delighted if you were there and we could have a good exchange.

Have a good start to the new year

Best regards

#dividends
#cashflow
$O (-0.59%)
$PEP (-2.56%)
$AWK (+0.15%)

I want to save up the proportion of the two large ETFs to 25% each and then leave the portfolio roughly the same weighting, i.e. 50% ETFs, 40-45% equities and 5-10% Bitcoin.

I buy and hold and am not entirely sure how suitable some of the current stocks are for this.

On the other hand, there are a few companies that I would like to have in my portfolio for the long term (e.g. $WMT (+1.52%)
$COST (-1.42%)
$AWK (+0.15%) or $VIE (-0.77%) ), but I don't want to have more than 45 individual companies in my portfolio.

What do you think of the portfolio, do you have any suggestions for improvement?

Briefly about me: I am 22 years old and would like to continue building up my assets until I am about 60.

P.S.: The return is not correct. Due to a system error, getquin thought I had sold all my shares in the meantime. Fortunately, my portfolio was actually able to beat the S&P 500 this year and last year🤩

Slowly build up a position - water the liquid gold of the 21st century ✌️

hey guys

while searching for interesting titles I came across $AWK (+0.15%) stumbled upon

I find the rating very interesting.

do you have any opinions?

My foray into water shares has so far been a good idea that I will continue to pursue

Severn Trent $SVT (-1.74%) has increased its dividend to shareholders after profits rose by a fifth last year, despite the company's wastewater pollution rising by a third in 2023.

The FTSE-listed company, which supplies water to much of Wales and the West of England, increased its final dividend by 9% to 70.1p a share, while profits rose to £201.3m.

I've got my water goods basket

out $AWK (+0.15%)
$XYL (-0.18%) and just $SVT (-1.74%) started to build it up. I'll keep at it

https://uk.finance.yahoo.com/news/severn-trent-hikes-dividend-despite-081605635.html

Small addendum

The industry regulator Ofwat will meet soon to decide on the increase in draft legislation between 2025 and 2030. The draft proposals are due to be announced on June 12.

Severn Trent wants to invest 12.9 billion pounds and increase customer bills by 35.7 percent.

Between 2020 and 2025 the average annual bill for Severn Trent was £402.63, for the next five years the average would be £546.35 if Ofwat's business plan is accepted.

https://www.bbc.co.uk/news/articles/c0dem8v7epzo

Hello Community,

thank you for your great response to my last post Sin Stocks - Stocks that are considered sin sin. Today I would like to share another controversial article with you:

How do I profit from climate change?

Climate change is being talked about like a pig in practically all the traditional media, especially in Germany. I'm less interested in hyping up the next apocalypse than in taking a rational view: what megatrends are emerging and how can I invest in these trends?

To keep things interesting for you, I won't be writing the usual blah blah blah about renewable energies, electric cars, hydrogen and so on. You're probably already familiar with that. I'm also interested in stocks that might only be interesting at second glance and shouldn't be found in every 08/15 portfolio.

Before we get started, one more request: let's stay on topic and talk about shares. In my opinion, moral or political discussions have no added value if no investment can be derived from them.

Impact 1: Increase in natural disasters and extreme weather

The hurricanes in the USA, the flood disaster in Arthal... each of you will be aware of one event. There is no doubt that natural disasters can cause enormous damage. The task of the next few decades will probably be to make buildings more resilient, to make cities more resilient and so on. However, the buildings that are already standing do not (yet) meet these requirements. Therefore, the first share is:

$CAT (-1.64%) Caterpillar.

With their construction machinery and clearing vehicles, they can clear up what has been destroyed. Our colleague @TheOrangeExcavator recently wrote a nice introduction to this share here on the platform.

Then, of course, there is insurance, as the need to insure against such events will increase. The insurance business model is based on calculating risks and then setting a price. If the risks increase, the price rises - and so does the need for insurance.

$MUV2 (-2.29%) Munich Re has been able to increase its profits by over 20% p.a. in the last 5 years. In addition, there is a dividend yield of around 3.3%, which is constantly being increased. The share is currently performing well - in my view, something for the watchlist.

Much more exciting from my point of view are "shovel manufacturers" for insurance companies. I am talking, for example, about $VRSK (-1.18%) Verisk Analytics, which specializes in data analysis for insurance companies (and increasingly other industries). They either create analyses for their customers or offer their analysis tools for independent analyses.

Why take the risk of a single insurance company when you can rely on the supplier in the background? Cash flow and profit have been growing at double-digit rates p.a. for 5 years. Sales growth is estimated at 7.5 %. All this with high sales stability. Very interesting growth stock from my point of view, which could be picked up in the next correction.

Impact 2: Rise in sea level

Sea levels are expected to rise by up to 1.1 meters by 2100. Mega construction projects are needed to protect against this. Here I have (how could it be otherwise) a Dutch company on my radar: $ARCAD (+0.55%) Arcadis. The company offers planning and technical development services for construction and infrastructure projects. This is not a pure play on sea level rise - they do many projects, such as environmental remediation, mobility projects and management consulting.

Sales growth >8 % in the last 5 years, profit growth of approx. 15 % p.a. in the last 5 years speak for themselves.

It has also just performed quite well, certainly something for the watchlist. If interest rates fall again and the scope for investment increases again, this share will certainly also benefit.

Impact 3: Water shortage and drought

Sea levels are rising - and water is becoming scarce? No contradiction! We are talking about fresh water/drinking water.

In my view, the most interesting value here is $XYL (-0.18%) Xylem. They offer a wide range of water-related technologies: Transportation, testing, wastewater treatment, purification and, and, and.

Sales growth >10% in the last 5 years, estimated earnings growth of 11%. It has also just performed well, with a P/E ratio of 25 I would consider buying in. The share always comes back well.

A look at water utilities could also be worthwhile, for example $AWK (+0.15%) American Water Works. I presented the share in a post-buy article of mine - if you are interested, you can find more about the company there.

If you want a more exotic stock, you can take a look at the $TORO Toro Company. The company offers irrigation systems for agriculture, golf courses and sports fields, among other things. The less water there is, the more efficiently it has to be distributed. They are also active in "snow and ice management". Could also become more relevant in winter with increasing extreme weather events. Sales growth of over 8% p.a. in the last 5 years, profit growth of 6%. Plus a dividend of 1.6%. Currently quoted below the historical P/E ratio.

Impact 4: Changing biodiversity

How can seeds be adapted to the changing climate as a source of food for humanity? Monsanto used to be a company in this field - now part of Bayer. From my point of view, it's a collection of powder kegs that regularly blow up.

But there is also a pure play alternative: $CTVA (-0.6%) Corteva.

They produce seeds, pesticides, fungicides, etc. The key figures are somewhat mixed, but in my view it is an exciting candidate for the watch list. The business could gain more and more momentum due to climate change.

It is also becoming increasingly important to get as much as possible out of existing crops. Here I myself have $DE (-0.65%) Deere in my portfolio.

Sales growth over 5 years: 9.3 % p.a., profit growth 30.7 % p.a. in the last 5 years. P/E ratio of 12 (!).

Top dog in its field. Some also see the share as an AI investment, as they are producing increasingly intelligent machines for agriculture. Smaller farmers will probably increasingly reach their limits, it will consolidate, as only "the big players" can secure the top technologies.

Due to a certain cyclicality, I have the share (currently the only one) in my savings plan.

Impact 5: Social unrest and migration

It cannot be ruled out that new causes of war over fertile soil, drinking water etc. will emerge in the future. The big players such as $LMT (-0.23%) Lockheed or $BA. (-0.25%) BAE should be familiar to most people. Less well known is probably the $KOG (-1.9%) Kongsberg Group from Norway. Its main segments are Defense Aerospace and Maritime. Double-digit sales growth, even stronger profit growth.

Unfortunately, this can also be seen in the chart. Probably too expensive due to the current crises - but in my view the share should be kept on the radar alongside the well-known stocks.

That was my presentation of some investment cases. Even if some of them seem expensive at the moment, I think it makes sense to create a watchlist of interesting candidates at an early stage. When things go wrong, you know what's on your shopping list. Then you can get into companies that should have a tailwind in the long term.

Now it's up to you:

- What (perhaps indirect) effects do you see from climate change?

- Which shares do you think could benefit from climate change?

- Which shares do you already have in your portfolio?

I look forward to your comments.

Fun fact: When I asked my girlfriend (not really interested in shares) about possible profiteers, her timid answer was: "Manufacturers of umbrellas?" But I hadn't found a pure player, so there was nothing in the article 😉

You never stop learning.

Your Money Man

Cash dividend payable in the second quarter of 2024

CAMDEN, NJ--(BUSINESS WIRE)-- American Water Works Company, Inc. (NYSE: $AWK (+0.15%) ) today announced that its Board of Directors has declared a quarterly cash dividend payment of $0.7650 per share of common stock, an increase of 8.1 percent.

The company expects to continue its dividend growth in the range of 7 to 9 percent over the long term and to target a dividend payout ratio between 55 and 60 percent of earnings.

https://ir.amwater.com/news-and-events/financial-releases/financial-release-details/2024/American-Water-Announces-Increased-Quarterly-Dividend/default.aspx

Unfortunately, I only recently started a savings plan, so the position is still small

Subsequent purchase American Water Works.

American Water Works is a water supplier in the USA. You often read the sentence "XY is always consumed" to express that a product is always in demand, regardless of the economic situation or similar.

In my opinion, this is often a fallacy - people always eat, for example, but what exactly? Maybe the cheap own brands...?

When it comes to water supply, on the other hand, the sentence is probably true. Fresh water is always needed - and you can't choose between 100 water suppliers.

The security of AWK's business model was therefore probably rewarded with a significant valuation premium in the past (P/E ratio between 30 and 40). The P/E ratio is now 24, which is significantly lower than in recent years and the historical average.

The dividend yield is therefore around 2.4%.

Due to the predictability of sales and profits and the crisis-proof business model, I consider the dividend to be secure and it should continue to increase in the future (last 5 years approx. 9.7% increase p.a.).

The persistent interest rates are a burden on the company to some extent, as it is also making takeovers or taking over the supply of public institutions (privatization).

In my opinion, however, this is only a temporary effect.

I've also had the water tech stock Xylem on my radar for a long time - but it's still too expensive for me. Hence the decision in favor of AWK.

What are your thoughts on the share or the sector?