Alliance and Lufthansa Are the two dividend stocks with high yield now a buy?

however, it Is expected that you will get the Problem of "Coronavirus" in the longer term, the current sell off could present a good opportunity for long-term

Alliance and Lufthansa Are the two dividend stocks with high yield now a buy?

however, it Is expected that you will get the Problem of "Coronavirus" in the longer term, the current sell off could present a good opportunity for long-term investors.

Fools, the dividend shares, with the shares of Lufthansa and the Alliance, such an entry-level opportunity.

Both share the title of a current high dividend yield at a cheap price-to-earnings ratio (p / e) promise. Where the risks lie, I would like to present in this article.

So it is with the German Lufthansa

The Lufthansa with an annual turnover of almost 39 billion Euro in the fiscal year of 2018, one of the leading aviation corporations in the world.

In the year 2018 has been recognised in the balance sheet of the Kranich-Airline earnings per share of 4.58 Euro, which corresponds to a p / e ratio at the current share price of 11,90 € (Stand: 03.03.20) of 2.6 can be derived. Lufthansa 11,39 EUR -0,56 (-4,65%) Xetra

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the last dividend of 0.80 euros a dividend yield of 6.7 per cent, to hope for – if it is assumed that this value is also paid in the year 2020. The leading German Airline, is clean the lens already now a super bargain for investors .

Whether the dividend is, however, paid in the current year, however remains open. Already in the nine-month report of 2019, a significant decrease in group gross profit of 43 per cent. The earnings per share for the first nine months amounted to € 2.18, but, far more than the last dividend payment.

Clearly fallen Oil prices will come Lufthansa for the benefit of,

The current Coronavirus-shock helps of Lufthansa, however, relatively little. The positive is that Oil prices have entered a significant decline. On the other side of the Cologne-based group is struggling with a sharp decline in the demand for air travel. More and more people avoid the Private and business trips for fear of an infection.

As strong at the end of the financial numbers are drawn in the year 2020 affected, there are, to date, little reliable information from the group page. Fools should pay close attention to the statements by Management and the spread of the Coronavirus in the keep an eye on. This is a great theme for the stock in the year 2020.

it is the Alliance

the second share in the Coronavirus-Check, the Alliance , offers a high dividend yield with a low p / e ratio.

According to the preliminary data of the year figures for fiscal year 2019 earnings per share of 18,90 Euro. Compared to the previous year, the amount of 17,43 Euro has increased and therefore the result is 8.4 percent. Next, there was the dividend is a 6.7% increase (from EUR 9.00 to EUR 9.60). It is also planned to launch a new share buy-back launch program in the value of 1.5 billion Euro. Good news for shareholders – if not for the Coronavirus would be.

based on the current share price of 196,58 Euro (Stand: 03.03.20) is a current p / e ratio of 10.4, a dividend yield of 4.9 percent. Alliance 195,50 EUR -3,10 (-1,56%) Xetra

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The greatest risk, this is the responsibility of the insurer due to a spread of the Coronavirus, could be in the capital market risk. The Munich-based insurance giant depends on its business model, heavily influenced by developments in the financial markets. Low or negative capital-market yields could meet the group, therefore, difficult.

furthermore, there is a certain risk that the group for costs due to cancellation of trips or fairs, operating shutdowns or outages must be held liable in connection with the Coronavirus.

risks due to operational shutdowns or outages in connection with the Coronavirus small

The sums should be operational shutdowns to be low, since many of the customers have no extended liability and a normal Police did not rule out the risks of an epidemic strikes. The cancellation was last assumed to be a total loss in the low two-digit million range.

the risks explain How, in the end, remains to be seen. Brave investors with a long-term investment horizon, however, could build now in the hope of a speedy discharge of the corona virus epidemic is a Position.

The article "the Alliance and Lufthansa: Two dividend stock with 4.9 and 6.7 % return in Coronavirus-Check!" appeared first on The Motley Fool Germany.

Disclaimer: Frank Seehawer owns shares of the Alliance. The Motley Fool owns any of the shares mentioned.

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Date Of Update: 05 March 2020, 15:00
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