Hello guys, I finally put the investment trigger again and I made two investments this month. I especially took advantage of the currently very cheap looking german stock market. The stock was already in my portfolio, but now I purchased a couple of new share to almost 2/3 of the price I initially sold it. The second stock is a large German automobile company, which is at the moment super cheap but also will face some problems in the future.

Investment I

BASF

Based in Germany, BASF is the world’s largest chemical company, with products spanning the full spectrum of commodities to specialties. In addition, the company is a strong player in agricultural crop protection and has a sizable exploration and production business in oil and gas. Given its sheer size, BASF has a top-three market position in 70% of its businesses. Around half of the sales are generated in Europe, while North America and Asia each account for about 20% of sales.

As I said BASF was already in my Portfolio, but this time the price was too tempting and I think it is at the moment undervalued. It is yielding at almost 5.50% and was a couple of days ago at its 5 year low. So I bought 30 shares at a price of 58.14 EUR. This investment will add 93.00 EUR in dividends, based an annual dividend of 3.10 EUR, to my dividend income (before tax). The next year expected dividend will be at around 3.20 EUR. The average potential upside on the current price is 28.82%.

Investment II

Daimler AG

Based in Stuttgart, Germany, Daimler makers Mercedes-Benz and Smart cars, commercial trucks and vans, and buses. Brands include Mercedes-Benz, Freightliner, Western Star, Fuso, Setra, and Orion. Daimler Financial Services provides the company’s dealers and its customers with vehicle financing. Daimler owns 3.1% each of Renault and Nissan, while Renault owns 3.1% of Daimler. Daimler also owns 15% of Russian truck maker Kamaz. Li Shufu, chairman of Chinese automaker Geely Automobile, owns 10% of Daimler. Other major shareholders include Kuwait Investment Authority at 7%, BlackRock at 6%, Renault-Nissan Alliance at 3%, and Harris Associates at 3%

Although Daimler is facing some troubles in the future I decided to initiate a position. Again the price was just too tempting and it is at the moment yielding at 7.54%, similar to BASF, Daimler is currently as well at a 5 year low. In the end, I bought 30 shares at a price of 47.12 EUR. This will add 109.50 EUR in dividends, based an annual dividend of 3.65 EUR, to my dividend income (before tax). The average potential upside on the current price is 29.34%.

Conclusion

Through these new additions, my full-year dividend income is now at 1 974.62 EUR or 2 253.36 USD, with a current yield of costs of 3.44%. With these investments, I am now very close to my target to reach 2 000 EUR in projected dividend income after tax. Honestly, I am very happy with those two investments and I finally have also an automobile company in my portfolio.

The current average dividend income per month is now at 164.53 EUR, which is a nice monthly addition considering the fact that I do not have to work for that :).

For the remaining year I am still planning to do at least one more investment or even two, this time it will be an American stock again. Currently, I am having an eye on Philipps 66, Prudential Financial and XOM. But also the Austrian market looks attractive at the momentVoestalpine and Österreichische Post currently offers nice yields. Anyway, let’s see which one it will be :-)...