Dividends are an important part of the investment strategy for many investors. But while some swear by regular payouts, others take a critical view of dividends. In this article, we take a closer look at the pros and cons of dividends.

✅ Advantages of dividends

📈 Passive income

Dividends provide regular income without having to sell shares. They are particularly attractive for long-term investors or as a supplement to a pension.

🏛 Stable companies

Many companies with a long dividend history (e.g. Coca-Cola, Johnson & Johnson) are established, profitable companies with solid business models.

🔄 Reinvestment & compound interest effect

By reinvesting dividends (e.g. via a savings plan), capital can grow exponentially in the long term.

📉 Protection in times of crisis

Dividend stocks are often less volatile than pure growth stocks and offer a certain degree of stability in the portfolio.

❌ Disadvantages of dividends

🚀 Slower growth

Companies that pay high dividends often invest less in their growth. Tech stocks such as Amazon or Tesla do not pay dividends, but are growing rapidly.

💰 Tax burden

In Germany, dividends are subject to withholding tax (26.375% incl. solidarity surcharge, church tax if applicable), which reduces the net yield.

🔻 No guarantee on distributions

Dividends are not guaranteed! Companies can reduce or cancel them if it is economically necessary (e.g. in times of crisis).

📊 Focus on incorrect key figures

Some investors are dazzled by high dividend yields without paying attention to the financial stability of the company. An excessively high payout ratio can be a warning signal.

🔎 Conclusion

Dividends offer stability and passive income, but are not a panacea. A good strategy can be a mix of dividend and growth stocks, depending on your personal investment objective. Anyone investing in dividend stocks should not only be guided by the yield, but should also check the quality of the company and the sustainability of the distributions.

💬 How do you feel about dividends? Do you rely on distributions or do you prefer pure growth?

$NOVO B (-2,62 %)
$PEP (+0,31 %)
$AGNC (+1,48 %)
$HAUTO (+2,82 %)
$KO (+0,9 %)

#etfs
#dividend
#dividende
#cashflow
#aktien

How do you feel about annual returns?

$AGNC (+1,48 %)
$O (+1,62 %)

What other stocks do you know that pay a monthly dividend and of course have a future?

These are the current Upgrades🟩 for this Monday, the September 18, 2023.

• $AGNC (+1,48 %)
  UBS downgrades from "Neutral" to "Buy", with a Target price of $11.50 (previously $10.50).🟩

• $AIN (+1,22 %)
  TD Cowen Downgrades from "Market Perform" to "Outperform", with a Target price from $106 (previously $100).🟩

• $AYX
  Morgan Stanley downgrades from "Equalweight" to "Overweight", with no change in price target.🟩

• $BCRX (+0,31 %)
  RBC Capital downgrades from "Sector Perform" to "Outperform", with a Target Price from $10 (previously $9).🟩

• $CVNA (+0,79 %)
  Wedbush downgrades from "Underperform" to "Neutral", with a Target Price of $48 (previously $40).🟩

• $DASH (+2,48 %)
  Mizuho Securities downgrades from "Neutral" to "Buy", with a Target price of $105 (previously $90).🟩

• $ESAB (+1,74 %)
  BofA Securities downgrades from "Neutral" to "Buy", with a Target price of $89 (previously $61).🟩

• $IRDM (-1 %)
  Deutsche Bank downgrades from "Hold" to "Buy", with no change in price target.🟩

• $JKHY (+1,33 %)
  Northcoast Research downgrades from "Neutral" to "Buy", with a price target of $185.🟩

• $KIM (+1,57 %)
  Mizuho Securities downgrades from "Neutral" to "Buy", with a price target of $20.🟩

• $LHX (+0,81 %)
  Wells Fargo downgrades from "Equal Weight" to "Overweight", with a price target of $209 (previously $204).🟩

• $LMT (+0,52 %)
  Wells Fargo Downgrades from "Underweight" to "Equal Weight", with a Target Price from $440 (previously $433).🟩

• $MU (+2,2 %)
  Deutsche Bank downgrades from "Hold" to "Buy", with a Target price of $85 (previously $65).🟩

• -$NLY (+1,08 %)
  UBS downgrades from "Neutral" to "Buy", with a Target price of $24 (previously $21).🟩

• $ONCT
  H.C. Wainwright downgrades from "Neutral" to "Buy", with a Target price of $2.🟩

• $PB (+0,78 %)
  Hovde Group Downgrades from "Market Perform" to "Outperform".🟩

• $RL (+2,22 %)
  Guggenheim downgrades from "Neutral" to "Buy", with a Target price of $166.🟩

• $SKX (+0 %)
  Piper Sandler Downgrades from "Neutral" to "Overweight", with a Target Price of $59 (previously $54).🟩

• $SMPL (-0,02 %)
  Morgan Stanley downgrades from "Equalweight" to "Overweight", with a price target of $40 (previously $37).🟩

• $ZIM (+2,88 %)
  JPMorgan downgrades from "Neutral" to "Overweight", with a price target of $15.40.🟩

Regrouping in $GAIN (+1,78 %)

getquin Daily Summary 11.10.2022

Hello getquin,

Happy Tuesday to all of you. Did you have a good start to the week?

Europe🌍:

1. Amazon invests 1 billion in European electric fleet

Amazon wants to reduce its emissions and is investing around 1 billion euros over the next 5 years in Europe to do so. From the sum, electric vans are to be purchased and low-emission parcel centers built. As a result, the electric delivery fleet is to triple by 2025 and comprise around 10,000 vehicles. Currently, Amazon has about 3,000 electric delivery vans in Europe, which will have delivered about 100 million packages in 2021.

Read more: https://reut.rs/3rMTXCs

🟥 $AMZN (+0,1 %) 115,56€ (🔽 -1,77%)

America🌏:

2nd U.S. banks set aside reserves for loan defaults

This week is earnings season at major U.S. banks. But even now, more and more information is leaking out about how banks are preparing for the coming months and whether they think a recession is coming. The big banks are probably expecting an increased rate of loan defaults in the next few months, so they are building up reserves of about 4 billion for the time being.

Read more: https://on.ft.com/3CQoWUu

🟥 $JPM (-0,08 %) 105,86€ (🔽 -3,09%)

🟥 $BAC (+0,45 %) 30,66€ (🔽 -2,71%)

Asia🌏:

3rd Nissan to deepen partnership with Renault

Renault and Nissan have been working closely together on research for the past few decades. Now the two automakers want to deepen and reorganize their cooperation. Part of this deepening is to be an investment in Renault's electric car division. The amount of the investment and whether it will be the only organizational step will become clear in the coming weeks.

Read more: https://on.wsj.com/3rJ1IJw

🟥 Nissan 3.23€ (🔽 -3.57%)

Special: Will Gorillas be bought by competitor Getir?

Gorillas was the pioneer of Quick Commerce in Germany and is now probably the first to be taken over. In recent months, Gorillas CEO Kağan Sümer is said to have tried to raise a new round of financing, but apparently failed. Now rival Getir from Istanbul wants to take over Gorillas and thus expand its German and UK business. The contract has not yet been signed, but the investors are said to be in agreement. What do you think of the takeover?

Read more: https://bit.ly/3Mr2e8C

Stocks of the day:

🟩 TOP $AGNC (+1,48 %) 8,24€ (🔼 +8,89%)

👍 AGNC publishes its dividend payout and further financial measures. This leads to a slight recovery of the share price

🟥 FLOP $LYFT (+3,17 %) 11,84€ (🔽 -10,49%)

👎 The US Department of Labor announced a rule change that would make it harder for companies to classify workers as independent contractors. At Lyft, all drivers are independent.

🟥 Most searched $BAS (-2,28 %) , 41,52€ (🔽 -3,91%)

🟥 Most traded $P911 (-2,69 %) , 83,88€ (🔽 -4,36%)

🟥 S&P500, 3,603.13 (🔽 -0.26%)

🟥 DAX, 12,200.54 (🔽 -0.59%)

🟥 bitcoin ₿, 19,654.03€ (🔽 -0.30%)

Time: 17:30 CEST

#MarketNews
#MarketNewsUpdate