Watchlist

Stocks for a rainy day

If you are afraid of a recession, but you don’t want to sell off all your holdings, these companies might be of interest.

PPG-PREF

A triple net preference share with long tenure. The properties are located in Scandinavia, mainly Norway and Finland. They are rented out to government backed services as kindergartens and hospitals. Each preference share pays 7,5 nok, with a step-up of 1 nok a year from 2020, until a maximum of 10 nok. From 2020 the company may buy back all shares at a price of 100 nok.

Akelius- pref

A Swedish company owning rental properties in large cities in Europe and North America. Quarterly dividends of 5 sek a share. No step-up, and a reduction in redeem price. From may this year it can be bought back for sek 345, and from 2024 sek 330. Hence it must be considered to be “everlasting”. And rising interest rates will reduce the price of the share.

Essity

A personal hygiene company. They have strong brand names as: Libero, Tork, etc. Due to the nature of the business, it will be stable through the cycles, and cash flow will likely increase year after year, because of the rise in the worlds population. However, at the current price I think it is a bit expensive, but will consider buying at a pullback.

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