Sunday, March 3, 2013

E.ON.

E.On, a German energy provider


The second stock that I bought in March 2012 was E.On. back then it was an AG but now they have changed it into the European company form of an SE which will lead a better tax overview for the companies that have a large involvement in several EU countries.



E.On was bought due to many reasons. Already back then when the shares were at 17€ a piece the P/E was favourable at around 8 and the P/B was below 1. They also had a very high dividend payment of almost 6% which lead to that I bought a couple of shares.

The stock has since then been valued below my initial buy value and in December 2012 I doubled my quantity of shares to a total of 240 at as cost of almost 15.4€ per share due to the price dilution.

Now in March 2013 it is even possible to buy the shares for under 13€. This latest drop was due to two reasons. Firstly they will for the year 2013 put a %-age on the dividend and secondly they are still divesting for changing the direction which means that the profit in 2013 will be less. However the dividend from 2012 will be 1.1€ meaning almost a 8.5% payment if one buys the shares today. I hope that I can increase my shares with my next months salary.

These shares will be sold when the dividend drops down to 1.5 to 2%.

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