April and May are the months when Damrak funds hold their annual shareholder meetings and preclude dividend distribution.
This week, Ahold Delhaize (€0.59) and Ordina (€0.395) are trading without profit on Beursplein 5. What are the current stocks the most beautiful And better Dividends of shares on the Dutch stock exchange? It should be in italics, because there is no clear answer to it and that is why it is subjective. What do you think is most important?
You can come up with more, but these are the main factors that come into play in determining whether or not a fund is a good dividend stock.
- The current dividend yield
- Earnings growth
- Track records Dividend date
- will pay-an average
- Free cash flow
- stock purchase
The simplest thing, of course, is to simply print the highest dividend yield on Damrak.
Oh, buy OCI and we’ll all be rich in no time? If only it were that simple. Because OCI only participates as a dividend stock and this has to do with one-time excessive dividends. At that ratio, PostNL looks like a good dividend share, but it isn’t. The road is very choppy.
What about all of that?
Yield, growth, track record
The theory, of course, is simple. Best dividend stock:
- Do the dividend rate is higher than interest and standardindex
- Let the yield grow faster than inflation, the economy and the market average
- Continuous improvement, or preferably allowing profits to grow faster every year for years or even decades than inflation, the economy, and the market average
There are great examples of such arrows, such as Dividend Aristocrats. Here are some examples and no, they are not for everyone. Certainly not for hardcore ESG investors, because the percentage wrong Companies far above the best dividend yields. Fossil, weapons, eating, swallowing and blowing: nice then.
Back to Damrak: Note that it is the financial and cyclical companies that generate the highest dividend yields – far more than Shells, Unilevers, KPNs and Ahold Delhaizes in this world. Heineken, RELX, Unilever, Wolters Kluwer, Beursplein 5 newcomers Exor and UMG don’t even make it to Damrak’s list above.
It’s all about risk and return. Cycliclas and financials are riskier and more volatile than defensive ones (dividends). Therefore, it is also much cheaper and brings a higher dividend yield. List trimmed at 2.6%.
This ratio was not chosen at random. AEX (based on Friday’s closing position, as it applies to all scores in this article) is making a 2.7% dividend yield and the so-called Without risk Ten-year interest rates are at around 2.6%.
Here are the dividend yields for AEX funds plus a few additional columns, which are of utmost interest to dividend investors.
profit percentage in itself Doesn’t say anything about Quality of yield. For example, it could be an excellent one-time return (OCI!), or simply unsustainable (maybe PostNL). We measure the latter in terms of free cash flow and payout ratio. It is also important to buy back the increasingly popular stocks.
Although this is not stated in these tables, it is in fact also (kind of) a dividend, or at least a return to shareholders. with global division of taxes gaining importance. They are also attractive to companies because they are more flexible than dividend payments. To reduce or exceed this is the failure of the company.
Companies that consider their own valuation too low can make this known as a silent tip-off through stock buybacks. Think Shell, Ahold Delhaize, and Finance.
So dividend growth is much more important than dividend yield. For example, ASML, ASMI, and Besi, due to their rapid growth despite much lower percentages now, may be more attractive as dividend stocks than PostNL. Free cash flow and payout ratio are important things to watch; They contain indications of the sustainability of earnings (growth).
Just for fun, do the accounts for the contributors ASML, ASMI, and Besi ten years ago Buy and hold Buy now for dividend returns. For example, Warren Buffett once bought Coca-Cola for a total of $1.5 billion. These shares are now worth several times and he takes $900 million in dividends. And counting.
Decide for yourself which of the three – percentage, growth or history – is most important to you. It is impossible to objectively announce the best dividend stocks. See here, for example, our financiers who do high ratios, but offer wobbly lines.
Which one do you choose?
In light of valuation (not in the table) and percentage, growth, or earnings track record, the undersigned rank Ahold Delhaize, ASR, NN envoor, Relx, ASML, and ASMI as AEX’s best dividend stocks right now. Of course, the last two are really debatable, because they are very cyclical.
Find out the differences with these two model leagues! Another advantage of share buybacks, isn’t ASML particularly inclined towards it? With modest increases in earnings, the company maintains flexibility and resilience. Excess cash can also be used to buy back shares. Maybe it’s even better, because a dividend cut or pass on is out of the question.
Just look at Shell, three years ago! The undersigned (longtime) believe the energy company is secretly happy to throw away this sky-high yield. The fund is now becoming more flexible each quarter in how it uses its free cash flow: will it pay a dividend, buy back shares, invest or pay down debt (or unexpected taxes Pay)?
Here you have the official defensive value and/or dividend stock of AEX. Relx and Wolters Kluwer stand out nicely, but the latter box isn’t without its risks. In fact, Shell no longer belongs to this list. With the dividend cut cut by two-thirds three years ago, the fund is now in effect High yield bonds Changed to Dory.
Do you still owe AMX money? SBM abroad and TKH and CTP? Real estate actually requires its own appraisal.
Finally, here is AScX. Brunel?
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