12 good reasons to invest in the stocks of our « High Dividend » investment theme.
1) The dividend payouts of European based companies have never been so good ; 15 companies in this investment theme are European based,
2) The upside potential of these companies is 1.3 x higher than the market,
3) European dividend companies are traded at a discount compared with the rest of the world,
4) In some sectors, such as financials and food, we expect companies will increase their dividends more than average,
5) This investment theme includes banks, which only recently became “investable” again,
6) The dividend is an integral part of the equity’s performance,
7) Dividend paying stocks are to be expected to supported generally by the market because of ongoing low interest rates,
8) Pension funds have only recently started to buy equities, hence this is very supportive for equity markets,
9) The investment choice must be made around companies that regularly increase the dividend payout amount,
10) Dividend paying companies generally have a well-defined management structure and excellent business track-record,
11) Dividend payouts are expected to increase further in the course of the next 18 months,
12) Dividends are less volatile than earnings; hence one can expect that these portfolios are less volatile than others.