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The Nest Egg Portfolio: 6%+ Yielding Red Electrica De Espana Stays In The Portfolio

Published Sat, 26 Dec 2020 11:35:00 -0500 on Seeking Alpha

Seeking AlphaDividend Ideas | Utilities  | SpainThe Nest Egg Portfolio: 6%+ Yielding Red Electrica De Espana Stays In The PortfolioDec. 26, 2020 11:35 AM ET|| About: Red Eléctrica Corporación, S.A. (RDEIF), Includes: AMSYF, ANIOF, ATRBF, EURN, FNCTF, KLPEF, MBSRF, MBSRY, MT, MTCN, MTUAF, MTUAY, ORAN, PFE, RDEIY, TOT, TTFNF, WRDEFby: The Investment DoctorThe Investment Doctor European Small-Cap IdeasWe zoom in on capital gains and dividend income in European small-capsSummaryRed Electrica's cash flows remain robust despite the demand drop in Spain and the new regulatory framework with lower remuneration for its Spanish activities.
The dividend appears to be safe, and an interim dividend will be distributed in January.
Two positions were sold at nice profits in the past few months, and the cash level was boosted in excess of 10%.
Three months have gone by since the previous edition of the Nest Egg Portfolio so it’s about time for a closer look at the portfolio and update it with a few recent transactions while also removing the options from the portfolio past their expiry date.
In the previous edition of the Nest Egg Portfolio, Orange Belgium (OTC:MBSRF) (OTC:MBSRY) was added back to the portfolio. Unfortunately (or, rather, fortunately) we sold the stock again in December after parent company Orange (ORAN) made a run to acquire all outstanding shares of Orange Belgium it didn’t already own. Apparently Orange shared our thesis Orange Belgium was undervalued, but unfortunately our profits are minimal as we hadn’t established a full position yet. You can re-read our previous Nest Egg Portfolio about Orange Belgium here.
In this edition, we’re looking back at Red Electrica (OTC:RDEIF) (OTCPK: RDEIY), the Spanish power transmission operator. Back in 2017, the company promised an increasing dividend, and although it has indeed continued to pay dividends, the share price hasn’t moved. Time for a check-up.
Red Electrica de... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
ORANGE 15.34   0.0 0.00 0.72 4.82
TOTAL 51.70   12.8 4.03 2.38 4.59
PFIZER 37.28   17.0 2.19 1.44 3.85
ARCELORMITTAL 16.56   8.2 2.02 0.17 1.02
RED ELECTRICA 10.11   0.0 0.00 0.00 0.00