Attractive returns through overnight money and stocks: Advantages of dividend yields for financial experts

Attractive returns through overnight money and stocks: Advantages of dividend yields for financial experts

According to a report by www.merkur.de, points out attractive interest rates for overnight money and interesting returns on dividend stocks. While some banks are reluctant to pay higher interest rates on investments, direct banks now offer up to 4% interest on overnight deposits. At the same time, stocks, especially in the DAX, also offer annual dividend yields of over 10%.

The dividends of companies represent the shareholders' participation in the profits. The dividend yield is calculated by dividing the dividend by the price of the share. Fluctuations in the stock market price and dividend yield can lead to losses. Dividend stocks are shares of companies that generate a good dividend yield over a longer period of time and distribute a significant portion of their profits.

There is a tax peculiarity with Deutsche Telekom shares, where the dividend is currently not taxed. However, this tax benefit only applies to purchases made before 2009. Despite the tax aspects, investors were able to record a stock return of 3.76% and an increase in value of 16.7% in 2023.

Current developments on the financial market show that investors do not only have to limit themselves to low-interest products such as overnight money, but can also achieve attractive returns with dividend stocks. However, intensive research and a sound investment strategy are necessary to benefit from these opportunities.