There are stormy times on the stock market! At the beginning of January, the indices were in correction mode worldwide. And even in the last week, many of the global stock prices dropped significantly again .
If you ask me, such times are literally screaming for some defensive dividend stability for your portfolio. Defensive stocks often perform better than the benchmark in such turbulent times, and dividends can be psychologically reassuring.
With this in mind, today we want to take a look at BASF, Siemens and Henkel. Maybe you will find in this selection yes one or the other Ruhepol that your portfolio urgently needed.
Admittedly, for many, BASF may not be the first choice if the keywords are defensive dividend stocks. For it is well known that BASF belongs to the chemical industry, whose main business areas are generally anything but un-cyclical and thus defensive.
However, if you ask me, BASF could be the exception to this rule. The reason? A very strong and broad product and industry portfolio. BASF offers a lot of chemical solutions for everyday things, from automobiles to electrical engineering and nutrition, H to hygiene applications, K to plastics, L to coatings and agriculture, P to pharmaceuticals, V to packaging to Z to pulps. By the way, in this selection I have even omitted some segments.
However, BASF’s stock price has now come under significant blow due to recent corrections. From 97.67 euros in mid-January, it went down to now only 82.82 euros per unit certificate (02/03/2018). As a result, investors in BASF are currently receiving a dividend yield of 3.74% on a planned payout of 3.10 euros per share.
However, if BASF smells too cyclical as a chemical company, then Siemens might be a more interesting asset to you. Siemens is for sure one of the world’s largest conglomerates a concept, right?
As a classic conglomerate, Siemens can look back on a similarly extensive range of products and industries such as BASF. I will not bore you at this point again in detail with an A to Z series, however, the range of industry solutions also ranks here from A like automobiles to Z like cement, with many, many other keywords that are a very broad and commonplace Shown spectrum (synonymous you will certainly have integrated one or the other Siemens device in your everyday life, or not?).
In the latest correction, however, the Siemens share had to let a little feathers. From 125.14 euros on 23.01.2018 it went here last downhill to 103.70 euros per unit certificate. However, given the dividend payout for 2017 of EUR 3.70 per share, the dividend yield is again a respectable 3.56%.
However, if BASF and Siemens are too broad in their corporate structure, Henkel could be an interesting defensive dividend for you. Henkel owns only three business segments with its adhesive technologies, beauty care and detergents and cleaners segments. Slightly slimmer than the other two candidates, right?
Nonetheless, all of these are very defensive segments that will find buyers at any economic stage. This makes the Henkel share in my view a very solid defensive stock.
It is also envisaged that a dividend of 1.77 euros will be paid out per ordinary share for the 2017 financial year. As the Henkel common stock is now traded at a level of € 97.80, investors here receive a very defensive 1.80% dividend yield.
In conclusion, we can therefore state that all three stocks presented here have their own individual defensive stimuli and, as a result of the market-wide correction, are now paying significantly more dividend yield than a few weeks ago.
However, whether there is something for you in this selection, or even whether you want to consider defensive dividend stocks for your portfolio at all, will of course, as usual, be up to you.