I recently published a watchlist of a few companies that got my attention. It didn’t take long for me to initiate a position in one of them. I decided to go with an insurance company from Austria. It means that I now own a piece of a company from a new country and a new sector in my portfolio. Shortly about Uniqa:
The UNIQA Group is one of the leading insurance groups in its core markets of Austria and Central and Eastern Europe (CEE). We have approximately 40 companies in 18 countries and serve about 9.6 million customers. With UNIQA and Raiffeisen Versicherung, we have the two strongest insurance brands in Austria and are well positioned in the CEE Markets.
This is how their main ratios looked like at my purchase price:
- P/E TTM – 13.72;
- Dividend yield (with proposed dividend of €0.53/share) – 5.6%;
- Payout Ratio – 77%;
- Debt/Equity – 0.56.
Fundamentals are looking pretty good, compared to other big insurance companies in Europe. I also liked what I read in their annual report (on the other hand, those reports always sound good).
One of the reasons I chose to invest to this company now is that I will still receive their dividends this year. Their ex-dividend date is at the end of May and they only pay once a year, so it will boost my dividend income quite nicely.
On the 23rd of April, I purchased 100 shares of Uniqa Insurance at €9.51/share for a total of €959 (including commissions):
This purchase will add €45.05 to my forward annual dividend income (after taxes). It puts me one step closer to reach my goal to receive €480 from passive income throughout the year.
What do you think about this purchase? What was your latest buy? Do you own any European companies in your portfolio? I would love to hear your thoughts!