Munich Re is the biggest Reinsurance in the world by revenue; it is also one the longest Dividend Aristocrats. He never decreased the dividend since 1970, 46 years increasing or maintaining the dividend.
It’s not a coincidence that the biggest shareholder is Warren Buffett, a well-known investor that he is always looking for profitable and consistent business (like KO, WMT, IBM, AMEX, AAPL…).
Why am I interested in this company?
The answer is SLEEP WELL DIVIDEND; with buying MUV2 you know that you are going to receive your dividend in May every year.
It’s not going to be the highest yield ever (however is around 5.3%) but it’s very safe and growing, to help maintain this policy the company is consistently purchasing its own shares (around 3-4% this year).
This model, quite common in the North American world, is quite powerful for any investor:
- The share price grows, your investment grows along
- The share price decline, the company reduce the number of shares and it makes easier to grow its dividend even more
- Until they keep paying the dividend, shareholders never lose