With $HAUTO (-12,1 %) you don't have to wait long.

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 (-6,66 %)
$PEP (-1,81 %)
$AGNC (-2,94 %)
$HAUTO (-12,1 %)
$KO (-3,58 %)

#etfs
#dividend
#dividende
#cashflow
#aktien

I only recently bought $HAUTO (-12,1 %) because the dividend was so high and how could it have been otherwise, the share plummets and then the dividend is halved.

But what are the reasons for the collapse? I haven't read any bad news or anything like that, does anyone here have more information?

#dividende

$HAUTO (-12,1 %)

Oslo, February 14, 2025: Höegh Autoliners ("Höegh Autoliners" or the "Company",

stock exchange symbol: HAUTO) reported a solid financial

2024 a solid financial performance. Gross revenue amounted to USD 352 million/NOK 3,878 million and operating profit

(EBITDA) amounted to USD 179 million/NOK 1,967 million and net profit after tax to

USD 138 million/NOK 1,517 million.

Highlights of the quarter

 Operating profit (EBITDA) of USD 179 million and net profit after tax of

USD 138 million.

 Gross freight rate decreased by 1% to USD 100.4 per CBM compared to the third quarter of 2024

 Höegh Borealis delivery in October.

 Delivery of Höegh Australis and Höegh Sunlight in December.

 Several contracts were signed with major international car manufacturers in the fourth quarter,

leading to the company's highest order backlog ever.

 Dividend of USD 245 million for the third quarter of 2024 was paid out in December 2024

 A dividend of USD 90 million (USD 0.4718 per share) for the fourth quarter of 2024 was declared and

will be paid out in March.

 The total dividend to be paid out in 2024 amounts to USD 841 million (USD 4.4084 per share).

share).

Outlook

Due to several new contracts signed in 2024, Höegh Autoliners starts the year with the

starts 2025 with the strongest order backlog the company has ever had.

normal seasonal slowdown at the beginning of the year, we expect volumes in the first quarter to be

quarter will be in line with those of recent quarters.

The delivery of new builds will gradually ease some of the pressure in our segment

segment, but the general market remains strong and has more volume than we can

can transport in important trade routes.

With regard to the crossing of the Red Sea, we are in regular contact with the relevant

relevant stakeholders and monitor the situation continuously.

The geopolitical landscape is unpredictable and uncertainty has increased in

increased in recent weeks with the threat and introduction of new tariffs. Höegh

Autoliners' direct exposure has been limited so far, but in general any tariff will have a negative

will have a negative impact on the overall market.

We expect an EBITDA result for Q1 that is slightly below that of the same quarter last year.

$HAUTO (-12,1 %)

the share seems to be quite favorably valued in terms of P/E ratio, KCV and potential dividend and is a clear value stock for me. Is there any news that explains the strong volatility in the last few days?