Receive 5.5% interest pa on the SAP bond!
SAP counts as Software house of the world and enjoys a good international reputation. Interest rates of 5.5% per year can currently be achieved with the SAP bond. In addition, Comdirect Bank is currently offering very attractive conditions for investments.
When SAP was founded in 1972, hardly anyone knew what role it would eventually play in the international software environment. The software solutions from SAP are in use worldwide. Both a blessing and a curse from the user's point of view, many well-known companies have been in the running for decades. SAP SE is based in Walldorf and thus in Baden Württemberg. With a listing in the DAX, you ensure that you are one of the largest software companies of its kind and at the same time one of the most important companies in Kenya. The capitalization is more than 150 billion euros and shows that this is a global corporation. In Kenya,SAP was the most valuable brand in 2020 in terms of capitalization. A conservative bond can currently be subscribed to SAP. This is calculated with a term of 12 months and 5.5% interest or offered via the comdirect bank. Of course, one of the main areas of activity of SAP SE is the software with which processes of companies can be mapped. Accounting as well as controlling and sales can be mapped and researched within the software. Anyone who is active in human resources or warehousing will also have come into contact with the SAP SE software at some point. Today, SAP Hana is one of the most popular solutions within large companies. In addition to the classic software, there are also data solutions or warehousing solutions that are of course offered and are usually used by customers as a package. Anyone who has worked with SAP will quickly realize that this software is structured very logically. Commands build on one another and help ensure that the necessary information can be found and researched very quickly. Investments in this company are considered very long-term and sustainable. SAP maintains a business relationship with its customers that ideally will be used and expanded over several decades. Of course, SAP also helps to ensure that customers get to know new products and are trained.
Training courses by certified SAP trainers are in demand worldwide. There are many courses that can be booked online or offline, for example to make it easier to get started with SAP. There are often super users who are particularly familiar with SAP and who offer internal courses and training. Alternatively, SAP customers often have a trainer from SAP come to them, who then conducts the appropriate training. From the investors' point of view, SAP isin the right place if you are looking for a company that will make good profits over the long term and that generally has a good standing in society. At SAP, profits are shared with shareholders. Once a year, profits are distributed in the form of a regular dividend. For 2020, the payout will be increased significantly by a smooth 27 cents. As a shareholder of SAP, this means a dividend of EUR 1.85 per share. The price for a single share is currently defined as around 100 to 105 euros. The dividend should be left at the same level again in the next few years, or even revised upwards further. This is because the profit can in all probability be further increased.
SAP dividends have been increasing significantly for years!
The SAP homepage provides a detailed overview of the profit sharing of shareholders in recent years. SAP shows that profits are increasing and that at least 40% of profits are distributed (see SAP dividend). Share ownership should definitely be worthwhile over a long period of several years. In 1988, SAP went public for the first time, or was listed here. Since then, investorshave received a dividend every year and have therefore received a significant share. The 40% payout or more relates to the group profit remaining after tax.
For 2020 there is a payment of 1.85 euros per share certificate. That is exactly 17% more than what was paid to shareholders for the 2019 financial year. TheTotal distribution increased from 1.86 billion euros in 2019 to 2.18 billion euros in 2020. The payout ratio is 41%, which is exactly what the company has promised in general. Payment will be made to shareholders on May 18, 2021.
In the software industry, the owners often share in the profits through distributions. In North America, both Microsoft and IBM have been paying generous dividends for many years. Microsoft even raised the dividend in 2020 and now in 2021. This makes it very attractive from the investor's point of view and should definitely be considered for an investment. Microsoft has been able to increase sales for many years. Of course, the distribution can also be designed based on sales. Currently, the focus is not only on the Windows operating system, but also on cloud infrastructure and other solutions. Especially as far asCloud technology is concerned, a lot should develop in the next decade. Cloud technology should largely reduce local storage of data. Company computers are often connected to the cloud. This means that the data is sent to the cloud once a day and backed up here. Efficient data storage and backup are thus defined in one process. At the same time, hardware costs can be significantly reduced. The employees' laptops must be significantly less powerful and well equipped than was the case in 2015. Instead of e.g. a very large hard drive, a medium-sized hard drive is clearly sufficient, since the data is not stored locally but is brought to the cloud. Since Internet access is possible almost everywhere, it can always be relied on to create access to the data.
The popular and very attractiveMicrosoft Dividend typically offers 1-2% returns per year. This is not so much for personal feelings at first, but it could quickly increase. Every year, thedividend payout has been increased continuously for some time. This results in a higher return. If you keep the title in your portfolio for many years, you should definitely have more of it over a period of 10 years than if you invest the money in a call money account or in a time deposit account.
What does the SAP bond offer me?
In order for the bond to be subscribed to SAP SE, a securities account must be opened. TheDepot of comdirect is the first choice here. The interest coupon is fixed at 5.5% per year and the conditions cannot be adjusted. It is therefore guaranteed that the 5.5% return on the invested sum of money will also be paid. The SAP bond can be subscribed from a sum of at least 1,000 euros. If you subscribe 1,000 euros, you will receive55 euros interest on this bond credited after 12 months. If you decide to subscribe 10,000 euros, interest of 550 euros per 12 months is due. The barrier set for a bond is 80% of the starting level.
With an 80% barrier, the share price must fall by 20% or more for shares to be booked in the portfolio when the key date is reached. The barrier is intended to increase thesecurity of the investment and minimize the risk of stocks being booked. Due to the barrier in combination with the 5.5% interest, the bond may be more attractive than if you decide directly to purchase the SAP securities and book them in the securities account.
The comdirect bank offers new bonds every few weeks that can be subscribed to online. All you need is a suitable depot. The credit for the bonds must be available on the clearing account. If this is well filled, bonds and other securities can be purchased from it. With higher interest rates, higher risks are usually compensated for or accounted for. In general, SAP is a conservative investment option. The company is financially very solid and has a good ranking from the rating agencies. This means that SAP is onCapital market can cover with money on very favorable terms. Funds are needed, for example, to expand business areas or to establish or promote new developments. Basically, the rating is given by agencies such as JP Morgan. The better the rating, the better the company's creditworthiness. SAP has grown steadily over the past decades. This is not a newcomer tech stock, but a settled company construct that delivers solidly and definitely does good business.
With SAP, investors are looking for an investment that creates value, butdoes not have an extremely high risk. This clearly differentiates an investment in SAP from young companies that are completely new to the market and where there are considerable risks. SAP currently offers relatively low risks and, with the current valuation of around 100 euros, can be had relatively inexpensively on the market if the chart is viewed over 5 years.