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The Dogs of the Eurostoxx 50 2007 January 31, 2007

Posted by deminvest in ABN Amro, Deutsche Telecom, Dogs of the Eurostoxx 50, Enel, Eni, European Stocks, Fortis, ING, investment, investment strategies, Single stocks, Societe Generaale, stock faq, stock I own, stocks, stocks that pay high dividends, Telecom Italia, Tlefonica.
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link to new Dogs of the Eurostoxx 50 2008

We, the people, love dividends. We like them because we always have to work and at least when we invest we want to see money flow on our bank accounts without having to work for once. We like dividends because we trust companies that are able to pay cash year after year. The Dogs of the Dow are well known. They are the 10 stocks that deliver the best dividends among the 30 stocks that are included in famous Dow Jones Industrial Average. But there are dogs also outside USA. Here I present a nice table of the Dogs of the Eurostoxx 50, which is the index of 50 most important companies. The Dogs are the best 10 dividend payers.

The Dogs of the urostoxx 50 1/1/2007

Stock Yield dividend price p/E 52-Week change
Telecom Italia 6,1% €0,14 €2,29 13,5 6,9%
ENEL 5,6% €0,44 €7,82 15,3 +17,8%
Deutsche Telekom 5,2% €0,72 €13,84 14,4 -1,7%
France Télécom 4,8% €1 €21,05 11,6 +0,3%
ABN Amro 4,5% €1,10 €24,35 10,5 +10,2%
Eni 4,3% €1,10 €25,48 9,7 +8,8%
Fortis 3,6% €1,16 €32,31 10 +20,2%
ING 3,5% €1,18 €33,59 9,8 +14,6%
Société Générale 3,5% €4,50 €128,60 10,4 +23,8%
Telefónica 3,4% €0,55 €16,12 13,5 +27,1%

I want to buy all of them, but I will stick to my rule about buying just one stock every month.

I think that in February I will buy th third, Deutshe Telekom, because I already have Telecom Italia and ENEL in my Portfolio.

Comments»

1. Weston Hankins - January 31, 2007

looks risky… forecasts for some of these companies aren’t very good. the communications companies are increasingly facing difficulties keeping investors happy.

2. deminvest - February 1, 2007

It is similar to the Dog of the Dow strategy. You can offset that risk investing in all 10 dogs of Eurostoxx and also in all 10 Dogs of the Dow. You can find the dogs of the Dow list on: http://www.dogsofthedow.com/dogs2007.htm

The strategy is precisely centered on the fact that those companies have reached such high dividend yields because they are not loved by the market so their stock price goes down, while their dividends usually remain unchanged. This is how the dividend/price ratio usually goes up.

If you want high dividend yields from very large companies, you can’t look for them in companies whose shares skyrocketed like Google. They don’t even need to pay a cent to attract investors!

That those are 10 of the 30 largest European companies, they can’t all go wrong! I think I will go for it, will enjoy the dividends and hope some will also please me with some nice capital gain.

3. doc nick - February 4, 2007

ENel a winner,picked it up @about 30 u.s.$ has been wonderful ever since. Plenty of cash,evolving very green power protfolio hydro/wind/solar/geothermal/less oil/more natural gas. Also green certificates,not only to cover themselves,but to be a net exporter of green certificates vis a vie co2 trading. Look at volume few know this co.

4. why did I buy 70 (DT) Deutsche Telekom shares? « Democratic Investments by the people for the people - February 5, 2007

[…] why did I buy 70 (DT) Deutsche Telekom shares? February 5, 2007 Posted by deminvest in stocks, investment, stoks I own, stock I own, stocks that pay high dividends, European Stocks, Dogs of the Eurostoxx 50, Deutsche Telecom. trackback 1)  I wrote I would […]

5. Grumel - February 9, 2007

I would prefer to just buy a Eurostox SelDividend Indexfund instead of that strategy.

The Selection Mechanism is a bit more sophisticated, the Basis is the entire stoxx 600 and you save Time and Transaction Costs.

6. deminvest - February 12, 2007

the ETF you are referring to is probably the (IDVY) iShares DJ EuroSTOXX Select Dividend.

It is very interesting.

You are right, transaction costs may be lower buying one ETF than buying 10 stocks. On the other hand you have to pay a small yearly commission on the ETF and no commission on stocks. Do you know what commission does your ETF propose?

I will maybe buy the ETF you mention on my monthly investment next month.

Thanks for your advise!

7. Joey - May 18, 2007

Hi, Can you please enlighten me on how you are able to get the most current dividend yields for Euro Stoxx 50? The investment stratergy is fenominal!

8. deminvest - May 20, 2007
9. jerry - August 2, 2007

Where can I find IDVY I tryed to find it through msn money, but they have no listing. I tried Eruostoxx still nothing. Would be interested in making an investment.

10. deminvest - August 2, 2007

Jerry, IDVY is traded on London Stock exchange, so you can find it on money.MSN.co.uk :
http://uk.moneycentral.msn.com/investor/quotes/quotes.asp?symbol=GB:idvy
more details about it on Bllomberg:
http://www.bloomberg.com/apps/quote?ticker=IDVY:LN
and on London Stock exchange website:
http://www.londonstockexchange.com/en-gb/pricesnews/prices/system/detailedprices.htm?ti=IDVY

11. albert - January 10, 2008

looking urgently fot the list of the dogs of the euro stoxx 50 as of close of december 07 starting 1st week of january 08
thak you for the help

12. deminvest - January 10, 2008

Since it is urgent, here is the unformatted list, prices at closing January the 10th :

Ticker Name Price Dividend Dividend Yield
ISP.MI INTESA SANPAOLO 5.21 0.38 7.29
TIT.MI TELECOM ITALIA 2.05 0.14 6.83
GLE.PA STE GENERALE-A- 96.57 5.20 5.38
ACA.PA CREDIT AGRICOLE 22.22 1.15 5.18
DBK.DE DEUTSCHE BANK N 84.33 4.00 4.74
DTE.DE DEUTSCHE TELEKOM N 15.48 0.72 4.65
FTE.PA FRANCE TELECOM 25.79 1.20 4.65
BBVA.MC BBVA R 15.27 0.70 4.58
IBE.MC IBERDROLA 10.75 0.49 4.56
BNP.PA BNP PARIBAS 71.95 3.10 4.31

13. Dogs of the Eurostoxx 2008 « Democratic Investments by the people for the people - January 10, 2008

[…] 2008 list with last year’s dogs of the Eurostoxx we notice that only Telecom Italia,  Société Générale, Deutsche Telekom and  France […]

14. albert - January 11, 2008

thank you very much but strange
I did find another list as of the 8th through another source which is
fortis 17.31 7.36%
intesa 5.22 7.28%
tel italia 2.10 6.68%
enel 8.16 6%
soc gen 95.02 5.46%
ing 25.65 5.42%
aegon 11.50 5.32%
credit agric 22.27 5.18%
eni 25.50 4.90%
deut bank 86.22 4.66%

what do you think?
any idea about the list 1st january?

15. albert - January 11, 2008

the source is actually bloomberg

16. deminvest - January 11, 2008

Albert, dividends are a bit tricky. Sometimes financial sites take dividend amount for previous year, sometimes they update it when a new dividend amount is decided by boards, sometimes they don’t. You have to do some research on a company before you buy it to know what kind of dividend you may expect.

Anyway, I found my data on Yahoo finance:
http://finance.yahoo.com/q/cp?s=%5ESTOXX50E checking one by one all dividends

I did try to look for your data on Bloomberg, but on their horrible website I can never find anything. Do you have a link?

17. deminvest - January 11, 2008

I did some research about ENEL. The board hasn’t yet decided the exact dividend for 2008, so financial sites can only guess.

Since Enel bought Spanish Endesa this year, Yahoo did bet that the dividend may be lower. I found on a December 2007 CNN article that “Enel intends to pay an annual dividend of at least 0.49 eur per share” on http://money.cnn.com/news/newsfeeds/articles/newstex/AFX-0013-21865300.htm
this would mean that Bloomberg should be right. Enel’s Yield should be around 6%, but nobody can be sure of the exact dividend for Enel in 2008, because it was not decided yet.

18. albert - January 11, 2008

many thanks

19. Weston Hankins - January 13, 2010

Seems like these stocks didn’t do very good during the economic turmoil.

20. deminvest - January 14, 2010

Actually a real disaster, specially the 4 banks:

Telecom Italia from 2.29 to 1.05
Enel from 7.82 to 4.15
Deutche Tlekom from 13.84 to 10.12
France Telecom from 21.05 to 17.44
ABN Amro has been bought out fortunately, otherwise would be close to 0
Eni from 25.48 to 18.1
Fortis was destroyed by banking crysis: it went from 32.31 to 2.73
ING: 33.59 to 11.02
Société Générale: 128.6 to 50.44
Telefonica: 16.12 to 18.58

I lost EUR 243 on Deutsche Bank, lost EUR 347 on Enel, lost EUR 412 on Telecom Italia.

Dogs strategy prove horrible. Same happened with the Dogs of the Dow.

The reason is that dogs yield such high dividends because they are large established companies, that see their stock value decrease because their business is a bit deteriorated, or they make too much debt. This kind of companies can recover well in good times, but can go nearly broken on difficult times.

21. Telekom - December 30, 2010

very nice i hope everything change now


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