Thursday, June 18, 2015

Dividend from E.On: June 2015

E.On, a German electricity producer

Ouch, this became more complicated than what I thought it would have been. As I mentioned there was the possibility to take shares as dividend this year. I decided in the end to do this since one got a discount on the share price as well as that there were no fees involved. I am still ashamed of when I took 4 shares in BP and ended up paying more in fees than what I received! At least now I do not only take shares when it is offered and I always read the papers very, very carefully before making my decision.

So on my broker account I received share options. I decided to take as many shares as I was allowed and this got registered by splitting my share options in two parts. One that corresponded to six new shares and one corresponding to the rest. The "funny" thing is that on my broker account I have upon the pay day three payments to me and one taken payment. I guess that was needed for the booking or whatever but I will make it different.

So the paid dividend was 0.5 € per share which means that I should have received 120 € in dividend for my 240 shares.  From this I would have paid 31.64 € in taxes and received 88.36 € as cash on my account. I did however receive six shares and 8.87 € paid out as cash on my broker account. The YoC of E.On is at 3.2% which I consider to be bad for an over three year holding (and four dividend payments!)

To find out more about E.On then please visit analysis of E.On 2015.

To check out my current dividend payment history then please visit the Stock Dividends page which has now been updated.


Fredrik von Oberhausen said...

I just got the news that I have passed the small exam (5 credits) in macroeconomy. So now I have managed to collect 21 out of 30 credits for this semester and I have high hopes also for the final exam that must soon also be corrected!

It will be great to have this macroeconomy behind me even though the re-exam for this small one will take place during my vacation so I would not have been able to take it but now there is alas no need.

DivHut said...

How did you every get though those calculations. Sometimes dividends aren't are easy or clear cut when distributed. Thanks for sharing.

Fredrik von Oberhausen said...

Hi DivHut,

Thanks for your comment! The paid out dividend was fixed to be 0.5 € per share so I knew I would get 120 € in total. Even though I did get a large part of the dividend as shares I still calculated what I should have paid in taxes (based on my personal tax rate) on those 120 € and then what was left would be my earnings IF I would have taken it as cash.

Taking shares as dividend before one starts to life on the dividends is excellent! But as I mention it is crucial that one knows about the fees and if too high then always take the cash!