I was waiting to buy Castellum when it was yielding 5% but with the recent rally in July the yield went down a bit. Finally the price came down so that the yield was over 5% again. Some part of me also wanted to buy at price 150 kr but I just wanted to get it over with so I bought in at 151 kr instead.
As of writing this I see that there was a lot of action in the markets last night in the US. Looks like Powell scared the markets in his Jackson Hole speach. I do believe he does have to be hawkish at the moment to combat inflation, and that the FED will hike into a downturn. However once the FED sees this downturn happen they will start easing again and markets will rally. How far lower we are going at this point is hard to say but maybe 10% more. I hope we don't see a 50% fall, that would be painfull. There will be a lot of pain this winter in Europe, rates will go up, energy costs will continue to rise. A lot of people will struggle, and the markets will struggle as well. If there's a big downturn I think it will be a great opportunity to buy, but I will keep on buying every month as usually.
For Castellum I really like that they are one of the great dividend payers in Sweden. They have raised their dividend for a very long time, and hopefully they will continue to do so going forward. Real estate may struggle in a higher rate environment but I think they can raise their renting costs to combat that. Something I also like with Castellum is that their payout calendar falls into some of the months that are my worst when it comes to dividend income so it will be a nice boost for January and August. That combined with a nice yield of 5% is why I've bought Castellum at this point.
Number of shares bought: 350
Price: SEK 151.00
Effect on yearly dividend: +SEK 2,660.00
