As mentioned in my recent article ‘While the future is uncertain, the dividend and apparent prospects for SES, give me confidence this may be a good place to weather the storm and even prosper perhaps’. Thanks to this recent investment in SES (Paris: SESG), in just over four weeks I should receive the next interim dividend of €0.25 per share (€0.21 after withholding tax), as part of the current €0.50 per share annual dividend.
My very, very, very cunning plan (or so I hope) is to reinvest this and future dividend payments not in SES but my other recent investment EnSilica (London: ENSI). This reason for this is that while the SES dividend is very agreeable, I think I can increase my overall returns by the end of 2026 substantially by placing the payments in EnSilica, whose share price I hope to see double by late next year if by then they are demonstrating good progress on their forecast that revenues could quadruple in the medium term, rising from about $30m annually to $130m annually.
If my plan works as hoped then my total returns from SES with dividends invested in EnSilica will be 71% of my originally investment in SES over a period of about 20 months, compared to 54% should I simply reinvest the dividends in SES.
Wish me luck!
UPDATE: After my Stop Loss order triggered on SES a few weeks ago and my subsequent decision to invest a large part of the released capital in EnSilica, I have adapted my strategy. To avoid further increasing exposure to EnSilica, which is now my entire ‘≈$10k to $1m’ capital, I will be reinvesting dividends from the SES shares I have since repurchased into further SES shares to benefit from the effects of compounding over time.