On March 12th, 2019, I bought 200 shares of Apranga (APG1L) paying EUR 1.61 per share.
Apranga stock has been on my stock watchlist since August 2018. Now, there are a couple of reasons I really like this stock and there is one reason which makes me concerned in the short term.
Here are the good characteristics I found - Relatively cheap price (hell, most of the Baltic equities are relatively cheap), decent dividend yield (around 7% for 2018), and what's important for me - it has a dividend payment once in a year, in May.
For May 2019, I have a goal to "supercharge" my dividend income and crack $300/mo
From the negative side, I should mention, the stock has depreciated -26.15% since October 2018 and more than 38% since March 2018. And while the end of 2018 was bad for most of the stocks across the Globe, Apranga hasn't recovered (yet). That makes me worry in the short term - right now I'm concerned about the very likely dividend cut. Sustaining a dividend at the level of 2018 (EUR 0.17 per share) would give a dividend yield of 10.5%. Not saying this is not possible, just thinking that most probably it is not going to happen. Hope I'm wrong.
Apranga historical stock price chart
Here is the silver line, why I believe that there won't be a dividend cut to 0 in 2019. In the past, since listed on Nasdaq Baltic list (since October 2005), Apranga has cut dividend down to 0, just in 2008 and 2009.
Personally, I'm looking on a dividend cut to EUR 0.10 - 0.12 per share in 2019. That would give a 6.2% - 7.4% yield.
- Apranga now is the 17th stock in my NASDAQ Baltic portfolio, which I'm building since 2017.
- Apranga now takes 4.19% from my Nasdaq Baltics holdings.
I'm looking to get a dividend of EUR 20 - 34 (USD 22.53 - 38.31 ) from this buy, which is about 1.1% - 1.8% from my $2,045 goal for 2019
Apranga Group is a distinct leader of clothing retail in the Baltic States.Apranga Group develops its own retail concepts: Apranga, Aprangos galerija, City, Mados Linija. Group also operates stores in Lithuania, Latvia and Estonia under the franchising agreements with Zara, Burberry, Hugo Boss, Emporio Armani, Ermenegildo Zegna, Max Mara, Mango, Massimo Dutti, Bershka, Pull and Bear, Stradivarius, Zara Home, s.Oliver, Promod, Orsay. Total sales area operated by Apranga Group by the end of 2017 was more than 84.000 sq. m.
The history of the company started in 1945 as a clothing and footwear wholesaler. In 1993 the retail chain was established. Apranga Group entered Latvia beginning of 2003. In 2004, the company expanded to Estonia. In 2004, Apranga group became a partner of Inditex Group in the Baltic States. Presently, the Apranga group consists of the parent company Apranga APB and 23 subsidiaries.
In 2018, the Apranga group employed over 2100 people.