Home » News » Dividend is good, yield is better

Dividend is good, yield is better


Holidays in Sardinia: Holidays should not be financed only with dividends.
Bild: Anzenberger

It does not make sense to judge stocks by profit distribution. The performance is more important – and the dividend can buy you the drinks that celebrate your winnings.

IIn the past few weeks my forehead has wrinkled several times as I try to help private investors manage their wealth. May I hit the door straight into the house and tell you about my experiences using the following example? A married couple is 130 years old. He is 66 years old and she is 64 years young. The one million rulers consists of the net present value of the old-age pensions and the market value of the home. The other million includes the bonds and stocks that are in the custody account of a private bank in Frankfurt am Main. I am proud to have convinced the couple in two sessions that the administrators are not worth their money. You have taken the couple around 150,000 euros in recent years, and we’d better keep silent about the consideration.

I suggested to the couple that 80 percent of the “liquid” million should be invested in shares because, in my opinion, there will be no flowerpot to be won with borrowing in the future either. The bonds and stocks are held in five index funds at a direct bank in order to increase diversification and reduce costs from 1.5 to 0.2 percent. Are there any solid reasons to go to the Freßgass’ behind the opera, if you know your way around Frankfurt, and douse the savings with a Dom Perignon 1973, or do you also think that this is a pure waste of money? So far, the couple has not been able to endorse either of the recommendations. Instead, the millionaires wanted to know what the annual dividends of the stock index funds are. I couldn’t answer the question, and I won’t be able to provide the answer in the future either, because I just don’t know which companies will be paying out how much money in the next few years.

– .

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.