This week – another stock purchase: UBM Development. I’ll give you a short introduction of the corporation and the reasons for the purchase.
Short Profile
UBM focuses on the development of hotels, offices and residential units in Germany, Austria and Poland and is listed in the ATX. The company is headquartered in Vienna, Austria.
WKN: 81540
ISIN: AT0000815402
General information
At least in recent times (1 year), the share price development has been more volatile than the overall market and compared to the industry as a whole. Nevertheless, the beta factor <1 is a conservative investment, at least according to this figure. On a 5-year average, one investor achieved a total return of 178 % (price + dividends).
UBM Development Chart (c) Wallstreet-Online
The risks are those that are always associated with real estate: For example, operational risks, sales risks and macroeconomic risks.
Dividend
The current yield is just under 5.4 % and is therefore not only high but also in the upper range of dividend payers in Austria.
The distributions are stable and are paid continuously. A more long-term dividend growth would be desirable, but at least since 2013 the distributions have increased.
The payout ratio is an important indicator for dividend investors. UBM pays out 38 %, thus retaining 62 %, which is a great cover for the dividend.
Reason for purchase
I see UBM as a solid Austrian dividend payer that will hopefully pay off. The return is right, and the payout ratio is – as a safety factor – more than ok. If you go by Pim Van Vliet, at least the beta is a factor to speak of a conservative investment. Well, the financial situation could be better, but debt has been reduced since 2017. In addition, the order books are full according to company information. Another advantage: the annoying double taxation is eliminated. Of course, key figures are nice and good, but what the future holds remains a forecast. Nevertheless, I hope that UBM will pay me beautiful dividends in the long term.
Do you have UBM in your portfolio? What do you think of the company?