Suche
Mein Konto
Dividend Myth: The Truth About Dividend Payments
Find out why dividends are not always the best investment and how long-term investors can invest their money better. Important tips for a successful investment. Everything on Börse Express - The dividend fairy tale.
Dividend Myth: The Truth About Dividend Payments
The topic of dividends is currently omnipresent in financial magazines and on financial websites on the Internet. It is reported that public companies in Germany will pay out over 60 billion euros this year. These prospects could raise hopes among non-professional investors. But it is often overlooked that dividends are not additional income like interest. Rather, paying a dividend causes the share price to fall accordingly on the day of the distribution.
An example illustrates this: An investor owns 100 XYZ shares at 100 euros each. On the day on which 5 euros per share is distributed as a dividend, the investor receives 500 euros in his clearing account, while the value of his shares in the securities account is reduced by the same amount. Overall, the value remains unchanged. Experts point out that dividends reduce a company's capital, which could actually be invested profitably.
Long-term investors might therefore be better advised to invest in companies that forego dividend distributions and instead invest the money in their own business or buy back their own shares. These strategies offer a better long-term compound interest effect than pure dividend distributions. Investors who want to earn regular income, however, could invest part of their assets in bonds or accounts that pay good interest. This allows for a steady source of income for consumption.
It is recommended to seek advice from asset managers who offer different opinions and investment strategies. These can help make long-term investment decisions based on individual goals and risk profiles.