Investment company Svolder (SVOL B), the stock has been going low for a long time and the question is when the underlying companies will get wind in their sails again.
Stock portfolio
Svolder is a nice and cheap alternative to managed small-cap funds on the Stockholm Stock Exchange. When you invest in Svolder, you get exposure to small and medium-sized companies . Things have really gone wrong for Svolder in recent years and they have not kept up at all with the OMXS30 or, for that matter, the Stockholm Stock Exchange’s broad index.
But then it has generally been a bleak period for small companies since 2022. For example, if we look at the most owned small company fund , AMF Aktiefond Småbolag , we see a similar development there too. The overtaking of the index is a fact. What many then do is sell to invest the money where things are currently going well.
As I said, many of Svolder’s holdings have had a really boring time since 2022. However, Svolder seems to be able to find nice footing and, for example, they bought back into Scandic Hotels, which has done really well.
The great thing about Svolder is that you can let the flesh and blood owners select these small and medium-sized companies so you don’t have to do that work yourself. After all, Svolder has been doing this since the company was founded in the 90s with great success.
Despite the sad years that have now passed, Svolder has still made 16.93% in annual average return over the last 10 years. That is a terribly nice figure. Then you have to take that the last 3 years have basically meant zero return.
According to today’s report, the net asset value per share is SEK 57.20. The price is currently SEK 55. This means that today you get Svolder at a discount, something that has been lifted by its absence for a very long time. Someday things will turn around for Svolder’s underlying company when the economy starts to pick up again.
An increased dividend from Svolder
The dividend is being increased today from SEK 1.7 to SEK 1.8 per share. Sure, it’s not as phenomenal growth as last year, but the trend continues nonetheless.
The best thing about today’s report for us dividend hunters is that Svolder is starting with a quarterly dividend. Of course, it’s true that we investors have to wait longer for the full dividend to be paid, but I would say that’s still positive.
Stock dividend strategy
The board proposes that dividends be paid quarterly.The change will result in a smoother cash flow for both Svolder and our shareholders, and we hope that this will make Svolder an even more attractive part of long-term savings.
The dividend yield is also 3.2%, this is not bad for an investment company.
I was owning Svolder for a while before selling it, however now I plan to slowly accumulate it, again.
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