The Nest Egg Portfolio: Adding Italgas As A Resilient Gas Distribution Company

Summary

  • I added Italgas to the portfolio as I like the resilient cash flows which are used to invest in additional growth in Italy.
  • The company's dividend policy is promising to payout 65% of the adjusted net income, but there's a floor.
  • Based on that floor the 2023 dividend payment will increase to at least 0.30 EUR for a 5.5% dividend yield.
  • The portfolio has finally caught up after a difficult 2020 and is showing a positive performance again.
  • There still is a gap to close with the benchmark (Stoxx Euro 600) and I will strive to close this gap in 2021.
  • Looking for a portfolio of ideas like this one? Members of European Small-Cap Ideas get exclusive access to our model portfolio. Learn More »

Geldzak en rechterhamer. Straf voor een misdaad en overtreding. Financiële straf. Overtredingen van de verkeersregels. Fraude. Prima, straf, mulct. Gavel, ik heb je nog nooit, ik heb Euro
Photo by Andrii Yalanskyi/iStock via Getty Images

Introduction

It has been way too long since I have provided an update on the Nest Egg Portfolio. Although this is meant to be a "buy and hold" portfolio with a limited amount of transactions

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This article was written by

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The Investment Doctor is a financial writer, highlighting European small-caps with a 5-7 year investment horizon. He strongly believes a portfolio should consist of a mixture of dividend and growth stocks.

He is the leader of the investment group European Small Cap Ideas which offers exclusive access to actionable research on appealing Europe-focused investment opportunities not found elsewhere. The a focus is on high-quality ideas in the small-cap space, with emphasis on capital gains and dividend income for continuous cash flow. Features include: two model portfolios - the European Small Cap Ideas portfolio and the European REIT Portfolio, weekly updates, educational content to learn more about the European investing opportunities, and an active chat room to discuss the latest developments of the portfolio holdings. Learn more.

Analyst’s Disclosure:I/we have no positions in any stocks mentioned, but may initiate a long position in ITGGF over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I have a long position in Eurocommercial, Glencore, Snam Rete Gas and Total. No position in Wereldhave anymore, only in Wereldhave Belgium.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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