5-Bullet Sunday

5-Bullet Sunday – #41

October is already almost half way! No issue with that, because I can’t wait anymore for the upcoming earnings season. So many great companies will start reporting their earnings!

Having said that, this week was a productive week again:

Bayer Dividend at Risk โ€“ My thoughts about the situation
Dividend Talk Podcast – Episode 17 – Munich Re – Dividend Stock Review

Enjoy todayโ€™s edition of 5-Bullet Sunday and as always, have a lovely remainder of the weekend!


5-Bullet Sunday 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 found here

Introduction: The Noble 30 – eDGI ETF Pie ๐Ÿ‘

As you might have noticed, I’m very passionate about Dividend Growth Investing with a strong focus on European dividend growth stocks.

This passion (my wife calls it madness) has led me to manually analyze the dividend growth history of over 200 European companies. Based on this I have figured out which companies are the best European equivalent of the US Dividend Aristocrats.

This is how the Noble 30 Index was born, 30 European Dividend Growth companies that haven’t cut their dividend for at least 20 years. This includes the most recent Covid-19 crash and the Great Recession of 2008-2009.

The Noble 30 Index gave me a lot of focus for further analysis to figure out which companies I would really like to have in my portfolio. However, there is always this feeling of being a kid in the candy store and the disappointment related to it by not being able to just buy everything in the store at once.

Well, wait no longer! ๐ŸŽ‰

Trading 212 (a fast growing stock broker) has just published a new feature which they call “pie-investing”. This feature effectively allows you to create your own little ETF ๐Ÿ˜

And that’s what I’ve just done. I first opened an account to start playing with the platform and especially this feature to build some confidence before transferring money to it.

But I must admit that I quickly became excited due to its extreme user-friendliness. The whole look-and-feel and the ease-of-use is so much better than DeGiro and Binck Bank so I quickly got convinced to try it out.

Hence I transferred this week approximately 1000 Euro to get started and the first thing I did was to create the Noble 30 Pie. Just check it out ๐Ÿ‘Œ

I was able to include 27 out of the 30 companies which is already a great result. 3 companies are not available yet, because Trading 212 is not able to access their markets yet. Hence, we’ll need to wait a bit longer for Assa Abloy AB, Coloplast A/S and Groep Brussel Lambert NV.

The 27 positions in the pie currently yield 2.94% (2.34% tax-adjusted) with an average 10-year growth rate of 6.85%. This is a decent return and of higher quality than the typical European Dividend ETF. Plus: it’s commission free, so no management fees. All created with passion, free of charge! ๐Ÿ’ช

Trading 212 comes with a great auto-invest feature so I’ve decided to set up an auto-invest rule of investing 1000 PLN (~230 Euro) per month automatically in this Pie for the next 10 years.

This allows me to slowly get used to the broker and at the same time build the experience of pie-investing.

You must know that I’m typically quite conservative when it comes to using new brokers, especially when I haven’t done my full due-dilligence yet. Please be therefore aware that I haven’t tested all the ins-and-outs of the platform yet.

Having said that, if you are as curious as I am and if you would like to give Trading 212 a try then you have the option to get a free share up to 100 Euro by signing up via the following link: www.trading212.com/invite/Gc30tIQs

It would also give me a free share. Hence signing-up via that link is a great way to show your love for my content ๐Ÿ˜˜

Once done, you can start investing in the Noble 30 Pie โš”

Are you just as excited as I am?

Upcoming Earnings

Finally it’s that time of the year again!

Earnings season is starting and I’m really looking forward to it. How did the companies perform during the summer? Did they bounce back while Covid-19 restrictions where a bit more relaxed? Or where some of them still struggling? Which company has been severely hit sustainably and is unlikely to ever get back again to where they once were?

These are the main questions that I’ve got in my head especially now that several European countries are bracing for impact with the recent spikes in Covid-19 hospitalizations (i.e. the Netherlands).

Having said that, I’m really looking forward for the following earnings:

I might join the $JNJ earnings call. Anyone willing to join me and discuss it live?

Novo Nordisk Trading Update

Good news! Novo Nordisk increased their guidance for the year. The main reason highlighted in their trading update is a less severe impact than expected due to Covid-19.

Just have a look at their adjusted expectations:

source: Novo Nordisk trading update 9-October

These are really strong numbers. Novo Nordisk earned 9.58 DKK per share in the first half of the year with an operating profit growth of 8%. Plugging in the above numbers will probably result in a an EPS between 18.50 and 19.50 DKK.

This is really high growth given the difficult year that we’re having. The company shot up 3.5% on Friday after the announcement and it currently trades for 454 DKK. This is a forward P/E of ~24. Not bad at all for a such a high quality company in a low-interest environment.

Novo Nordisk is a proud member of the Noble 30 Index with a track record of at least 23 years in dividend increases and it currently yields 1.8%

I really need to do an analysis about this company, because it’s long overdue. Let’s aim for early November just after their Q3 earnings announcement.

I currently don’t own any shares of it other than the fractional share from investing in the Noble 30 Pie at Trading 212.

Recommended Reads

Christopher Seifel wrote an excellent summary report about Sea Limited ($SE). It’s one of those growth companies which is really popular in the retail investors community. I don’t own any of it, but I’m looking into it for my 10% mad money section in my portfolio.

Dividend Growth Stocks published a post with Charlie Munger’s 10 rules for investing success. Be independent, have intellectual humility and stay focused are the ones the resonate most with me. I like to listen to Charlie Munger a lot. Sometimes even more than uncle Warren, but unfortunately he doesn’t speak too often.

Danny Goode wrote a good piece about the Snowflake IPO. Not something I’m considering to invest in and you would need to read his article to get his conclusion, but I’m really bullish on the software that they provide. Danny is another European investor, so check him out.

As you can see, not too many reads lately about (European) dividend stocks in the community. I don’t know what it is, but I’m observing some writer block’s from other European bloggers. Come on guys, consistency is key. You can do it!

Recommended Video

What to do with Oil & Gas companies? This is a question which many of you have in your mind and I found the below video very insightful.

Sven Carlin does a very good job in giving a broad analysis on the industry and comes with an interesting conclusion on how to make money in this industry.

I am personally a bit more optimistic, but I didn’t want to withhold this quality analysis for you ๐Ÿ‘‡


Thatโ€™s it for the week. I hope that you enjoyed this weekโ€™s 5-Bullet Sunday ๐Ÿ’ช

As always, have a lovely week ahead!

PS: donโ€™t forget that every comment = 1 Euro to Kiva.

Yours Truly,

European Dividend Growth Investor


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Piotr
Piotr
9 days ago

Hi, I do not fully get the idea of investing even in your own ETF as then you buy also overvalued stocks. Isnโ€™t it better buy one by one , even in small chunks, when they are priced below intrinsic price?

LRezny
LRezny
9 days ago

Funny, I have started my brokerage account with Trading 212 two weeks ago. Besides pie investing, I really like possibility of buying fractional shares and the most important, ability to charge the account instantly through card (think March market collapse and sometimes one day period of waiting for bank transfer to arrive to Degiro account). But, same as you, I have to dig in deeper, to find out more about this broker before moving significant amount of money there. Greetings from Czech Republic.

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