The fifth month is now over. Somehow just as volatile as the other months, but this time at least in positive territory. The S&P500 has made up some ground, although it is still down YTD.

In May, I recorded a gain of 2.12%. This corresponds to a value of almost 2500€.

The Dax (+5.06%) has beaten me again. This is already becoming the norm. In May, the HSBC MSCI World (+3.26%) also beat me. However, I am still ahead for the year.

Over the year as a whole (YTD), I have again lost ground to the DAX, which has risen sharply again. This time the MSCI World was also able to catch up strongly. Nevertheless, as you can see above, I am still ahead of the MSCI World this year.

My high and low performers in May were (top 3):

Tesla ($TSLA (+0,26 %) ) +22,79%

Microsoft ($MSFT (+0,36 %) ) +17,31%

Texas Instruments ($TXN (+1,54 %) ) +16,57%

Imperial Brands ($IMB (-1,23 %) ) -7,06%

Eli Lilly ($LLY (-0,33 %) ) -17,69%

UnitedHealth ($UNH (-0,97 %) ) -28,08%

United Health is again among the worst performers. Eli Lilly is now also among them. The pharmaceutical stock has now also fallen quite a bit for me. Nevertheless, I am still well up. Imperial Brands also did very well this year and can therefore correct a little again. Tesla is doing Tesla things again and Microsoft is generally on the up anyway. It is pleasing that Texas Instruments has risen again. This stock is quite volatile due to all the customs issues.

Dividends:

In May, I received €413.70 net from a total of 15 distributions.

Compared to May 2024 (€358.98), this was an increase of 15.24%.

There are now some more dividends in June, before July is by far the worst dividend month.

Investments:

The build-up of the nest egg is still not complete. I haven't received the bill for the car repairs yet, so I still have to set aside some money for that. Apart from that, the nest egg is growing, but it will take some time before it is at a satisfactory level. I'm currently tending to keep it at least €10,000 (because 5 figures is cooler).

Purchases and sales:

There were no sales in May.

I bought or increased United Health (2x)

savings plans (€125 in total):

• Cintas ($CTAS (+1,31 %) )
• LVMH ($MC (-0,7 %) )
• Microsoft ($MSFT (+0,36 %) )

Goals 2025:

My goal is still to have €130,000 in my portfolio at the end of the year. The goal is to be achieved by reinvesting the dividend, making payments and, of course, increasing the share price. The share price increase is of course impossible to predict in any way, so the motto is: if the share price falls or does not rise enough, more cash is needed.

This comes from selling useless stuff on eBay, additional income from e.g. "neighborhood help" etc.

The worse the share price, the more additional cash has to be raised.

Target achievement at the end of May 2025: 38.88%

Thanks to the good May, I have come a good deal closer to the average. Nevertheless, the year could still go a little better for me. But the feel-good factor is still 100%.

How was your May? The Rewind for May is already available. It looks quite nice too.

If you liked the report and would like to read more, feel free to follow me,

If you're not interested, you can keep scrolling or use the block function.

$IMB (-1,23 %) combines defensive qualities (stable cash flows, high dividend) with tactical growth potential - especially in a huge market like India. Anyone who, like me, believes in the long-term demand for tobacco products (including new forms of consumption) and sees emerging markets as an opportunity will find Imperial Brands an exciting investment with substance and prospects.

Business highlights for Imperial Brands ($IMB (-1,23 %) )

Market share gains:

In the five prioritized markets, an aggregated market share increase of 6 basis points was achieved, which is above the strategic target.

Price mix:

A price mix of 5.9% in the tobacco segment compensated for volume declines.

Growth in Next Generation Products (NGP):

Net sales increased by 15.4%, with growth in all three categories. Reported NGP sales increased by 14.7%.

Logista:

Strong results in the tobacco segment, but impacted by performance in the long-distance transportation segment.

Earnings per share (EPS):

Both adjusted and reported EPS increased by 6.0% and 0.7% respectively, supported by a further reduction in the number of shares.

Free cash flow:

A 12-month free cash flow of £2.4bn with a cash conversion of 99%.

Capital returns:

A £1.25bn share buyback program was launched and the interim dividend was increased.

Outlook:

The company is on track to achieve its full-year targets in line with guidance.

Financial overview (for the six months to March 31, 2025)

Key figure 2025 2024 Change

Net sales (£m) 14,604 15,064 -3.1 %

Tobacco & NGP Net sales (£m) 3,664 3,637 +0.7 %

Operating profit (£m) 1,456 1,494 -2.5 %

Adjusted operating profit (£m) 1,652 1,669 -1.0 %

Earnings per share (EPS) (p) 96.7 96.0 +0.7 %

Adjusted EPS (p) 123.9 120.2 +3.1 %

Net debt (£m) (10,471) (10,585) -

Dividend per share (p) 80.16 44.90 +78.5 %

Note: The 78.5% dividend increase includes a 4.5% underlying increase and an additional payment of 33.24 pence due to the change in dividend payments announced in October 2024.

Strategic progress

Market share development:

Growth in the USA (+10 basis points), Germany (+65 basis points) and Australia (+5 basis points) compensated for declines in the UK (-70 basis points) and Spain (-90 basis points).

NGP growth:

The company recorded increases in market share and net sales in all three NGP categories. Particularly noteworthy is the strong growth in Europe and the USA, which more than compensated for temporary challenges in the AAACE region.

Modern Oral products:

The "Zone" product line was successfully launched in the USA and contributed to further market share gains.

Financial stability:

Operating performance leads to consistent financial results and strong cash flows, enabling both investment in growth initiatives and increased capital returns to shareholders.

Future prospects:

Despite an uncertain global economic environment, the company remains on track to achieve its full-year targets, supported by tobacco price increases already implemented in the first half of the year and continued momentum in the NGP segment.

Note on today's share price performance:

CEO Stephan Bomhard, who took the helm in 2020, is retiring. The share price is therefore currently falling.

$IMB (-1,23 %)

I stopped smoking almost two years ago - and shortly afterwards bought shares in Imperial Brands. For a few months now, I've also been running a savings plan $IMB (-1,23 %)which I use to get my "smoky" money back: I invest one symbolic euro per day.

While others continue to smoke, I benefit threefold - on the one hand through the cost savings and on the other through the increase in value/dividends from Imperial Brands.

In addition, my health thanks me.

A Delaware judge on Monday ordered ITG Brands to pay rival cigarette maker Reynolds American $251.5 million in connection with a tobacco settlement in Florida after ITG acquired four cigarette brands from Reynolds a decade ago.

Vice Chancellor Lori Will of the Delaware Chancery Court rejected ITG's argument that the $251.5 million demanded by Reynolds should be reduced by the money Reynolds saved because ITG did not participate in the Florida settlement.

Reynolds is a unit of British American Tobacco $BATS (-1,51 %) while ITG is a unit of the British company Imperial Brands $IMB (-1,23 %) is. ITG has announced that it will appeal.

The case arose when Reynolds sold the Kool, Maverick, Salem and Winston brands to ITG in June 2015 so that Reynolds could get regulatory approval for its $25.8 billion purchase of smaller rival Lorillard.

Prior to the sale, Reynolds had made annual payments to Florida for many years as part of a settlement to cover tobacco-related health costs after the state accused cigarette makers of misrepresenting the addictive potential and health risks of smoking.

After the sale was finalized, however, Reynolds stopped making payments based on sales of the four brands it no longer owned.

Florida then sued Reynolds and ITG and obtained a judgment requiring Reynolds to make payments until ITG joined the settlement.

Reynolds paid Florida 251.5 million dollars for the four brands from 2015 to 2023.

Will determined in October 2022 that ITG is obligated to repay Reynolds, raising the question of the amount to be paid.

In his ruling Monday, Will said it would be "perverse" to reduce ITG's liability by the estimated $112.8 million in "profit adjustment" payments that Reynolds saved because ITG did not join the Florida settlement.

"Reducing Reynolds' damages as if ITG had joined the Florida settlement would prevent ITG from ever doing so," Will wrote.

ITG is based in Greensboro, North Carolina, and Reynolds is based in Winston-Salem, North Carolina.

In a statement, ITG said it disagreed with Will's findings on liability and damages and continues to stand by its arguments "as we seek reversal."

Reynolds and its attorneys did not immediately respond to requests for comment. The company's trademarks include Camel, Newport and Pall Mall.

And another step forward in the monthly cash flow, that was except for $IMB (-1,23 %) my last position, which was not yet fully completed in terms of purchase volume. So I'm done with the existing stocks for the time being. The average expected monthly gross dividend for the current portfolio without bonds and ETFs is now around €2,150. Now the second part of my investment plan begins: over the course of the year, I will initially invest a further 500k in cash in a wide range of investments from bonus certificates, corporate bonds, ETFs, commodities and a few selected shares from various sectors that are not yet weighted or only slightly weighted. The aim is to achieve moderate growth and the main focus is on an unexcited income strategy. Boring for many here, I weiß🤷‍♀️😉, but I've decided that I want to have sufficient monthly income when I turn 61 without having to go back to work. But I also need a bit of change to "gamble". I have treated myself to professional support for this major task within the framework of private banking and, in the course of expanding my portfolio, I take the liberty of presenting one or two securities with limited, but nevertheless attractive, returns for those here in the forum who are not quite so risk-averse.

In the current issue, "Der Aktionär" recommends these dividend stocks.

For a peaceful night's sleep (conservative):

• E.On $EOAN (-1,01 %)
• Johnson & Johnson $JNJ (-0,56 %)
• Munich Re $MUV2 (-0,58 %)
• PepsiCo $PEP (-1,17 %)
• Procter & Gamble $PG (-1,27 %)

Top dividend with medium risk can be seen in:

• Andritz $ANDR (+1,25 %)
• Freenet $FNTN (-0,39 %)
• Imperial Brands $IMB (-1,23 %)
• Traton $8TRA (+1,97 %)

Dividends with a yield kick are located in these shares:

• Frontline $FRO (+0,4 %)
• Petrobas $PETR3 (-2,32 %)
• Repsol $REP (+0,08 %)
• Stellantis $STLAM (+2,01 %)

Source: Der Aktionär, Issue 08.2025

The Food and Drug Administration (FDA) is backing away from its previously proposed tobacco product standard to ban menthol as a characterizing flavor in cigarettes on public health grounds. The FDA argued that menthol increases the appeal of cigarettes, especially to younger audiences. The proposed ban was intended to reduce experimentation and use among youth while improving the health of current menthol cigarette smokers by encouraging smoking cessation.

The withdrawal of this proposal is seen as a positive for tobacco companies who would have faced the loss of a significant market share. In the United States, there are over 18.5 million smokers aged 12 and older who use menthol cigarettes.

The FDA action aimed to address the leading preventable cause of death and disease in the country and reduce tobacco-related deaths and illnesses associated with menthol cigarette use. The agency also hoped to improve health equity by reducing tobacco-related health disparities.

With the proposal now off the table, tobacco companies are likely to be able to continue selling menthol cigarettes without the threat of an imminent ban. This is reflected in the positive share price performance. The market reaction indicates investor relief as a significant regulatory risk for these companies has been removed.

The news is particularly relevant for British American Tobacco $BATS (-1,51 %)which, along with its industry peers $MO (-0,59 %)
$PM (-0,16 %)
$IMB (-1,23 %) may now be able to avoid the financial impact that a menthol ban would have had on sales and market share.