An increasing number of investors, when selecting shares, do not only focus on share price performance, but also on a stable, high dividend – for good reason.
Comfortably making return on the money market via interest? A thing of the past. Investors wanting to outsmart inflation should think about dividends and dividend shares. The combination of dividend shares with a selection process that takes into account ESG criteria constitutes an interesting investment alternative. So there is a kind of “two dividends”.
Dividend shares have been sidelined by investors in recent years. At the moment, however, their valuation is significantly more attractive than that of the Growth segment, making them worth a serious consideration.
What to expect from equity markets? Interview with Peter Szopo, Chief Equity Strategist with Erste Asset Management, about the current situation on the capital markets.
The US and Europe are the two most important equity markets worldwide. In our article, we present 6 charts that show the difference between the European and US stock markets.
When share prices rise on the stock markets, investors are happy. How do dividend stocks work and what’s in it? In our blog post we give an overview of the main features of dividends.
The performance of European equities in the year to date has been disappointing. While in the USA stock exchanges are going from strength to strength, European share prices have been stagnating. Is it still worth investing in European equities?
To most people, the notion of the performance of shares relates to changes in the share price. This does not take into account the second component of return, i.e. the dividend. Simply looking at the share price development seems too one-sided to me. After all, dividends may account for up to a third of total return, as is the case for example for the shares listed on the Vienna stock exchange. However, shares with strong dividends do not generate the highest total return in every phase of the market.
Equities have without a doubt benefited from falling or low interest rates in the past. Along with company earnings, the level of interest rates is indeed a crucial driver of dividend-paying shares.
Half a year ago we launched a new equity fund, which offers an investment opportunity in global equities with a stable dividend yield above market average. At the same time, we take into account criteria of sustainability as well as social and ethical criteria in the stock picking process. We spoke with Alexander Sikora-Sickl, who is responsible for the investment process, about the performance since the launch of the fund and about the environment for dividend shares.