5-Bullet Sunday

5-Bullet Sunday – #22

5-Bullet Sunday

May is coming to an end and summer is slowly starting! The garden is really coming to life now and we finally started to plan some holidays.

Needless to say, but we decided to take it easy this year and therefore to visit a place off-season with limited interaction with other people. The last thing I need right now is a crowded place. Let’s see how it goes, but I can tell you that I’m really looking forward already!

Having said that, enjoy this week’s 5-bullet Sunday ๐Ÿ‘‡

#Danone #Dividends #Shell #CrodaInternational #SpaceX $TSLA #deGiro #EconomyVsStockMarket

๐ŸŒŸ Danone dividend

In early April I wrote a post about Danone’s decision to postpone their dividend. My thoughts at the time were something like:

  • It’s not popular to announce a dividend in the midst of the pandemic
  • There might be political pressure to suspend the dividend
  • It’s uncertain how severe the pandemic will be
  • The company has a very good reputation
  • Their balance sheet is rock solid

For those reasons I thought it was wise for the company to postpone the decision about the dividend. Well, good news, we don’t need to wait any longer!

Back on the 20th the company announced that it will pay the proposed dividend ๐ŸŽ‰

The ex-Dividend date is 14 July and the payment date is 16 July. You can still “scoop-up” some shares today at a yield of 3,41% (2,98% after deduction of 12,8% dividend withholding tax).

๐ŸŒŸ New noble 30 โš” member

Royal Dutch Shell decided to cut its dividend back in April for the first time since the 2nd world war. This automatically meant that the company lost its status as a Noble 30 โš” member. It took me a while to update the list and replace Shell by a new member, but here we go:

Good bye Royal Dutch Shell ๐Ÿ‘‹

Welcome Croda International plc ๐Ÿ‘

Croda International plc ($LON:CDRA) is a British speciality chemicals company based at Snaith in the East Riding of Yorkshire. It is a company that I wasnโ€™t aware of earlier and it should have actually been on the initial list. It ticks all the criteria and it has at least 28 years of dividend growth.

The company pays 90 pence in dividend over 2019 and currently yields 1,7%. The yield is below my starting yield threshold and that is mainly due to the relatively high price-to-earnings multiple (30+). The payout ratio stands at 52% and the company grew its dividend with an average of 7,18% over the last 10 years.

I find the company overvalued, but I would consider further exploring it if the P/E would drop to around 20. Their business portfolio looks good and their balance sheet is very strong.

๐ŸŒŸ Fly me to the moon Mars

๐ŸŽต Fly me to the moon 
Let me play among the stars 
Let me see what spring is like 
On a, Jupiter and Mars 
In other words, hold my hand 
In other words, baby, kiss me ๐ŸŽต

These were exactly the lyrics from the song by Frank Sinatra that came to my mind when I saw yesterdays SpaceX’s crew dragon demo-2 launch.

Bringing new people to the International Space Station is not so special by itself. But what made it special this time was the fact that it was for the first time in 9 years that a manned spaceship launched from the US and that it was the first commercial manned-flight ever to ISS.

Does this mean that a new era of space exploration has finally started? I really hope so! I’m part of a generation which is hungry for some real new breakthroughs. We’ve been to ISS multiple times before and we’ve been on the moon. So a real breakthrough for me would be getting a person to walk on Mars.

Maybe it’s just a dream, but I’ll be for sure watching when Elon Musk still gets this done within our lifetimes!

๐ŸŒŸ Recommended Reads

J. Money from budgets are sexy has decided to stop his blog. This is really the end of an era, because he has inspired so many people to start their journey of Financial Independence. His last blog post includes a lot of statistics about his blog which are just mind-blowing. If you don’t know his blog yet, then I’d definitely recommend having a look!

Mr Groeigeld wrote a blog post (in Dutch) about some recent awkward behavior from deGiro which means that he has to sell two of his US positions. I would recommend to read it to assess whether you are also impacted by deGiro’s recent decisions. I can’t help it to think that these are the “synergy potentials” that were envisioned as part of the acquisition by Flatex.

๐ŸŒŸ Recommended Video

Robert Shiller is a professor at Yale and he is famous for the Shiller P/E ratio. He often gets interview by the news channels to provide his opinion.

Therefore he was on Bloomberg this week explaining the reason for the divergence between the economy and the stock market. His explanation resonated a lot with me, so I thought it’s worth sharing with all of you ๐Ÿ˜„


5-Bullet Sundayย 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 earlier posts can be foundย here

That was it for 5-Bullet Sunday, edition #22

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Join others and stay notified ๐Ÿ’ช

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Have a good remainder of the Sunday!

Yours Truly,

European Dividend Growth Investor

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