9Mon

1. high share price fluctuations before and after dividend distribution 2. if a company pays out 50% of its profits to shareholders, it has less capital available for the further development of its product, i.e. it does not remain marketable in the long term

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9Mon

@FloShares then I can only hope that the next two years go well.

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m-a-k@m-a-k

9Mon

I am always surprised at how many people have an opinion but have zero knowledge of the subject. Thanks for the clarification @Joris

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9Mon

@m-a-k Thank you. I am also often startled. I notice immediately when someone confuses interest and dividends.

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Kevin E.@KevinE

9Mon

What if no more dividends are paid out from now on? The dividend yield is always that of the last 12 months, not that of the future!

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9Mon

@KevinC I think I have read that a dividend has been announced for the next quarter

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Kevin E.@KevinE

9Mon

@fz1006 That is quite possible. Let's assume fictitiously that you have invested €1,000. You still receive 2 distributions, each amounting to 10% of your purchase price over the next 6 months. However, the share price also receives a parallel discount on the ex-day. If it is then clear that there is little scope for further distributions after the two dividends, the share price may stay down. You will then have 20% (= €200) of your original investment in your account - minus the taxes due on it. However, if the outlook for MPC is not good, the share price will fall by at least the same amount and the portfolio value of your position may only be €600. Then you will still have made a loss.

You should assess whether the company is in a position to make good profits (and pay dividends) in the long term on the basis of a detailed share analysis. Otherwise the information is too superficial.

How else do you know whether the company won't file for bankruptcy tomorrow, for example because it has far too much debt?

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9Mon

@KevinC Good point. Before I invest more, I will probably have to go deeper.

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9Mon

@fz1006 Sorry, but in my opinion you have not yet fully understood investing. Get more information in general. I'm not being offensive, I think we need to help each other here on the platform and set ourselves apart from other platforms like reddit or Instagram.
First and foremost, I would never use a high dividend yield as a reason to buy.
If you have any further questions, please feel free to ask. Many people can help you here. And ask before you invest money ;)

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9Mon

@Joris I usually do my research beforehand. This was my first hasty purchase and I'll see what I get out of it. It's best to learn from mistakes.
A dividend yield of around 250% over the last two years still seemed to me to be a very good reason to buy, because after a certain time you have your invested money out again and everything after that is profit. Or have I fundamentally misunderstood the whole thing?

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René@Balatonbob

9Mon

I took a risk and am of course in the red with the portfolio. However, I have already received a dividend of EUR 68. Since then, however, the share price has risen again in the last week.
I think it remains risky, but I just wanted to see what happens.

In principle, I think that the container service will still be needed in Norway. After all, they distribute the containers from the big pots to the small ports. If you're not completely stupid, it shouldn't be extremely profitable.

But I didn't go in there with thousands of euros either. But I wouldn't be averse to investing more after a certain amount of time.

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9Mon

@Balatonbob you are in the red with your portfolio, but if you take the dividend into account, have you made a profit?

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9Mon

@Balatonbob How do you deal with the Norwegian withholding tax? How do you get it back?

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René@Balatonbob

9Mon

@fz1006 Approximately balanced at present

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René@Balatonbob

9Mon

@Joris I actually don't know that yet either. But it should be possible to find out. However, I still find the dividend interesting even after deducting the withholding tax

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9Mon

@Balatonbob @Joris
I found out via www.gevestor.de that the Federal Central Tax Office provides forms for such cases. If you look at www.bzst.de, you will be redirected to this page: https://www.skatteetaten.no/en/person/taxes/get-the-taxes-right/shares-and-securities/about-shares-and-securities/reduced-withholding-tax-on-dividends/?307194=307198

Looks complicated at first, but my future self will probably have to deal with that.

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Sparfuchs@Reinecke

1Mon

@Balatonbob I've only just read that. Container service ? But now I'm really curious 🤔

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9Mon

I'm sure you mean dividend yield and not yield. But I ask myself the question: what's in it for you? You buy for €1.147 and you receive the dividend of €0.59644. The dividend is deducted from the share price, i.e. the share price is €0.55056 and you have the dividend in your settlement account. Now you could reinvest the money and then collect (more) dividends again.
But the question arises when a company pays out 52% of its profits, what flows into the company? Are they still growing and is this reflected in the share price? The share price would have to rise by more than 100% to compensate for the dividend deduction. And the dividend is not safe, not with anyone.
I would prefer to invest in high-quality dividend growth stocks. You have price appreciation, dividends and dividend growth.

Or why do you think it's a no brainer to pour all your money into it? Completely irrational.

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9Mon

@Joris Share price does not fall to 0.5 Dividends are paid from the company's profit

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9Mon

@FloShares Of course the price falls 😅 and of course they are paid from the profit, it would be bad if not. What happened on 19.3? Ex Date.

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9Mon

@Joris The share price does fall, but for the reason that many sell their shares after the ex-date and there is therefore more supply than demand, and not because the dividend is deducted from the share price

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9Mon

@FloShares again for you from a reputable source:

https://www.commerzbank.de/investieren/wissen/dividenden-einfach-erklaert/

Definition: What is a dividend?

A stock corporation (AG) receives capital from its shareholders in order to build up, expand or restructure its company. By purchasing one or more shares, the shareholders effectively become co-owners of the company. In return, they receive a share of the profits in the form of dividends, for example.
However, shareholders have no legal claim to the dividend. The Annual General Meeting decides whether and in what amount a dividend is paid. If it approves the payment of a dividend, it is distributed to the shareholders in accordance with the resolution. The dividend is paid out per share certificate, i.e. per share. Payment is usually made in the days following the Annual General Meeting. The share is then quoted "ex-dividend" on one day, i.e. with a dividend discount. This usually reduces the share price by the dividend amount per share.

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9Mon

@Joris but it also states that the dividend is distributed from the company's profit and not from the share price

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9Mon

@FloShares No, that's not true. The dividend is deducted 1:1 from the share price.

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9Mon

@FloShares then unfortunately you have not read the text I copied to the end. It's in the last sentence.
Dividend is a profit share, which is clear in most cases that it is distributed from the profit.
There are also negative examples such as Nextera, which take on debt for this and then have a payout ratio of over 100%.

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9Mon

@Joris but often the price is back at the same level as before the ex, e.g. 1 day later

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9Mon

@Joris but thank you for the detailed explanation !!! <3

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View all 4 further answers

9Mon

@FloShares That can be good. But it is initially discounted 1:1. Many also use the discount to get in and then the share price rises, which is a quality feature of a good dividend growth share. But there is a difference between a 52% dividend yield and a 0.9% yield. You don't make up the 52% discount in one day.

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McZed@McZed

9Mon

I can't give you a really qualitative answer, but for me personally the risk was too high.

Small cap, very volatile and a rather difficult market after the fat corona years, which is why the price is currently going down. I briefly considered getting in at 1.35 and am now glad I didn't. It's difficult to identify the turning point. As I've been wrong too often in the past and the share price continued to plummet after my purchase, I left it alone.

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