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Finn696
@Finn696
1Mes·

Good evening, I am 18 years old, relatively new to investing and would like to invest my savings wisely. I am therefore turning to you for advice. Due to the current downsizing, the shares of $MBG (+0,03%) , $VOW (+0%) , and $P911 (-2,51%) have fallen sharply. I hope that the upcoming new elections in February could bring about a positive turnaround and thus an upswing for these stocks.


At the same time, I am taking the current high dividend yields of around 10 % into account. $MBG (+0,03%) and $VOW (+0%) but fear that these could either be reduced or completely eliminated in view of the current economic situation.


How do you assess the situation?

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24 Commenti
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Epi@Epi
1Mes
The dividend strategy is counterproductive at a young age. Too little return.
Otherwise, just google "value trap." 😉
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FairValue@FairValue
1Mes
@Epi Does anyone happen to have any empirical data on this?
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Epi@Epi
1Mes
@FairValue The web is full of them. What's stopping you from taking a quick google?
10s:
https://starlightcapital.com/en/dividend-growth-stocks-vs-high-dividend-yield-stocks
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FairValue@FairValue
1Mes
@Epi The internet is full of everything, for every study there's a counter-study if you search long enough and the significance of most of the studies is very limited.

I understood your initial comment to mean that dividends should generally be avoided.
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Epi@Epi
1Mes
@FairValue Hmm, you asked for empirical data, but at the same time you say that there is a counter-study to everything. So is there no truth to the stock market at all in your view?

I have nothing against dividends per se, only against a dedicated dividend strategy. It underperforms.
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FairValue@FairValue
1Mes
@Epi I am always open to studies that I may not yet know.
But basically, I think it's difficult to tell the truth on the stock market.


I agree with point 2
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Thorsten@silverbug999
1Mes
Invest in broadly diversified etfs. Never invest in cars. Unnecessary risk!
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Moritz@leveragegrinding
1Mes
The automotive industry makes little sense, as you need one thing for rising prices: actual figures are better than the estimate.

It's less about growth or anything like that, just about a company doing better than everyone expects:

That's not likely to happen with VW etc.

I would recommend buying 2-3 shares with a maximum of 25% and then simply holding them for at least 365 days from the time of purchase, no matter what happens.

The rest ETFs, you can adjust enough as you wish :)
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PunktPunktKommaStrich@PunktPunktKommaStrich
1Mes
But it doesn't sound like a prudent investment :))
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Chris@Psychedelic_Sunflower
1Mes
At 18, investing in dividend stocks makes no rational sense. Unless you have a few million in cash and want to live off it, then look for stable dividend payers and enjoy it.
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FairValue@FairValue
1Mes
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Metis@Metis
1Mes
@Psychedelic_Sunflower If the motivation is psychological, then it also makes rational sense to want dividend stocks.
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gqx@gqx
1Mes
@Metis But in this example, it is completely inappropriate to focus on the German automotive industry. The dividends of these companies are anything but sustainable...
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Metis@Metis
1Mes
@gqx That's a whole other topic, whether the selected shares are the right ones at all. :D
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Chris@Psychedelic_Sunflower
1Mes
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Chris@Psychedelic_Sunflower
1Mes
@Metis I classify psychological motivation as irrational. Rational is to look for an investment strategy according to the facts that has a higher probability of yielding a higher return.
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FairValue@FairValue
1Mes
@Psychedelic_Sunflower The return potential and quality of a company is not determined by whether it pays a dividend or not.
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Metis@Metis
1Mes
@Psychedelic_Sunflower However, it is extremely important to have knowledge of your psyche so that your emotions don't destroy your strategy. Making a decision rationally doesn't help you if you don't follow through with it under strong emotions. And knowing this and taking your emotions into account is also rational in the end.
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Chris@Psychedelic_Sunflower
1Mes
@FairValue No, not that, but companies that pay out a relatively high dividend have generally already experienced their greatest growth and will underperform the broad market in the long term. You buy companies despite the dividend, not because of it. Unless you want to consume the dividends. And even then, it may make more sense to sell some of the shares.
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Chris@Psychedelic_Sunflower
1Mes
@Metis That's why emotions have no place in the stock market. Emotions are not rational, and so neither is the action that tricks them. However, a dividend strategy is still better than a savings account or doing nothing, but it cannot be justified rationally and without emotion (if you are looking for higher returns)
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user35903002213@user35903002213
1Mes
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Dominik@ETFs_sind_dummes_Geld
1Mes
@user35903002213 Rather US growth stocks
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user35903002213@user35903002213
1Mes
@ETFs_sind_dummes_Geld I would do the same, but I had understood that he wanted to focus specifically on Germany because he expects a recovery in Germany after the Reds and Greens were voted out in February.
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