Invest 1,500 euros in top stocks with a 3% yield? We quickly realize that we will receive an additional 45 euros in dividends per year. This can therefore be a good extension of an existing position.
It is not only about the dividend yield, but also about the company-oriented overall mix. So let’s take a look today at which top stocks I am now reinvesting this amount into. It might be worth it to you too.
Top stock Kellogg: 1,500 euros flow again
Kellogg (WKN: 853265) is the first top stock with a 3% dividend to receive an additional €1,500. The first reason is relatively simple: I want to expand my position further. The value of my entire portfolio is currently less than 1%. It’s a little thin for me if I want to feel an effect from this position. After all: After that, the value should be slightly higher.
But the business-oriented quality is also right for me, which is why I buy more. Kellogg has strong products. It is one of the leading groups, especially in cornflakes. Products such as Pop-Tarts or Pringles complete the portfolio. There are also new business areas such as vegan alternative products. The management will not make one mistake: becoming too big, which is why in the future there will be a division into three different companies.
The valuation of this top stock with a 3% yield still seems very attractive to me. Currently, there is even a payout yield of 3.1% with a price-earnings ratio of around 17. Management can also provide pricing power thanks to the strong brands. With a little more weight, I see a lot more potential in this position and an extension of 1,500 euros in the long term.
Fresenius: More than 3% dividend
Fresenius (NASDAQ:RNP) is another top stock, but it’s not just about the 3% yield. In terms of valuation, we see a price-earnings of around 8 for a share price of just over EUR 24. It also shows that only 30% of the profit must be used for the dividend. Nevertheless, the distribution yield is relatively high at currently 3.7%.
In fact, I think Fresenius could be a good, defensive DAX stock that we see as a very cheap, rare opportunity right now. The market misjudges the business model and focuses on weaknesses around medical care, but overlooks operational strength, whether during the pandemic or despite the weaker areas.
I have bought Fresenius, a top stock in my portfolio, time and time again. With a yield of over 3.7%, it’s a good time for me to move up. 1,500 euros seems to me to be a reasonable investment at the moment.
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Vincent owns shares in Fresenius and Kellogg. The Motley Fool recommends Fresenius.