One of the characteristics of fixed income is that it does not offer any returns at the moment. To the point that many investors try to remedy this serious problem by targeting the dividends that companies distribute to their shareholders. Not in vain, time deposits, bank notes or bonds rarely exceed 1% levels in their interests. As a consequence of the cheaper price of money after the monetary policies carried out by the European Central Bank (ECB).
This situation in the price of money has led many savers to try to find new business opportunities to make your capital profitable. And one of the ways they have to achieve this is through this remuneration, that is, dividends. Because it is a simple and original way to form a fixed income within the variable. To improve returns on savings and can face with greater guarantees of success the increase in the cost of life through the rebound in inflation.
Well, although a priori the collection of dividends is a good idea to improve the margins that will go to your savings account, it also offers a series of doubts. It is convenient that you know them so that you can decide which is the best investment strategy that you can use from now on. Because there are not many proposals that you have at hand to improve the balance of your checking account. And most of them go through getting more involved in the equity markets. So clear.
Dividends: is it a good strategy?
Basing financial planning on stocks with high dividend yields can be very beneficial to your personal interests. But not without dangers, as you will be able to verify from now on. Not because of the operations themselves, but because it can take you away from other financial assets with a very beneficial scenario for the coming months. It is something that only you will have to elucidate to know what is best for you at the present time.
You may formalize this very special strategy to develop a savings bag in the medium and long term. To satisfy any personal whim or even to plan for retirement, even if you are still very young. Its purpose can be diverse and with all kinds of nuances. Although it is the most defensive and older savers who opt for this management model in their wealth.
However, opt for this wallet it can be very dangerous for your interests. The reason is because you can forget such strategic sectors in the stock market that do not start from the distribution of this remuneration. Where one of the most relevant is the technological one. Nor should you invest in these securities just because they pay out dividends. It can be a mistake that can make you forget about other business opportunities in the equity markets.
It is not a free payment
You cannot forget that nobody gives anything for free, much less listed companies. Dividends is an amount that they give you and that is automatically deducted from its accrual. Although they normally recover them in their price after a few trading sessions, even exceeding those levels. But it is not a rule that is followed every time. Anyway, it will be a payment that you will have guaranteed every year. With a regularity of payment that can be quarterly, semi-annually or annually, depending on the remuneration policy of the company in question.
Through this strategy you are in a position to generate a return on savings of up to 8%. With much better margin than through bank products (bonds, time deposits or bank promissory notes, among the most important). Although intended for a more aggressive investor profile than in these savings models. Because regardless of this aspect in remuneration, you can suffer the ups and downs of the financial markets. Lowering or rising in the quotation of its prices.
Planning retirement
Another of the most important purposes of the securities that pay dividends is to create a consistent retirement plan. From this scenario, the term of permanence would go to medium and especially long period. Not surprisingly, it allows you to accumulate a fixed income every year. To which can be added the possible revaluations of the shares purchased. So that in this way, you plant yourself in the golden years with a much more powerful monetary balance.
You can use this special savings model from the age of 40 or 50. If you are younger it will not be time to make this savings plan through dividends. From a very modest amount and that is very affordable for any saver profile that you present. With results that may be more favorable to your personal interests and above other programs destined for when your retirement arrives. And if they can be advised from a financial department, then much better.
What are the best returns?
If you consider this alternative in investment, you should know that the electric companies they are the ones that give the most generous dividend. With returns that range between 5% and 8% and generally through a semi-annual payment. Listed as Iberdrola, Endesa, Gas Natural or Red Eléctrica are some of the proposals for which you can choose from now on. Above the other stock market sectors, including banking. In addition, they are companies that maintain a certain stability in their prices. With little volatility and great liquidity in the commercialization of its titles.
You can also go to investment funds that are made in securities of these characteristics. But with safer approaches that allow you to diversify your investments. Instead of investing in a stock, you do it from a more open approach and in which other financial assets can be included. It constitutes another alternative to develop a savings exchange in the medium and long term, but little by little. Without spectacular increases, but where you can assume that the losses will not be very pronounced.
Contributions of these values
In any case, the use of this strategy in investment brings you a series of very gratifying advantages. And among which the following stand out that we expose you below.
- It is very difficult that in the long term you get ample losses on open positions in these financial assets. Even if it is through excessively conservative approaches that may not be to your liking.
- You will always have a guaranteed return for a long time, even forever. You will only have to choose the proposal that best suits your characteristics as a small and medium investor. Among an extensive list of companies that meet this purpose.
- If your goals are focused on faster operations, of course, it will not be the most appropriate alternative to defend your interests. It is preferable that you go to other more flexible values ​​that can satisfy this very special demand.
- If possible, it will be better to opt for the values ​​with dividend with better technical aspect and that they can do better than the rest. Even at the worst times for equity markets. With returns of varying intensity and from all sectors of the stock market.
- It is a money that you will quickly receive in your checking account and that it can help you to face the expenses of your domestic economy. Or even to pay for a personal whim, such as buying a motorcycle or taking a trip abroad, they are your best friends.
- It is very useful to develop a list that reflects all the companies that distribute dividends and the exact amount of the same. To help you make selective purchases of this class of securities,
- As a general rule, it is really advisable that when consider possible retirement you eliminate the division between investment and dividends. It is a factor that will protect the risks that this type of investment may entail. To the point that investment planning will always be more satisfactory.
- You may have some questions about whether it benefits you the application of this strategy. Because in effect, it will not always be the most opportune moment to carry out this opening of positions in the equity markets.
- The mechanics of these values ​​are always governed by the same constants and with few differences between one or another financial asset. But that does not indicate that you should not analyze the annual scenario of these components of the stock market.
- Companies that pay out dividends they are the most stable of the financial markets. With solidly consolidated business lines that distribute the benefits among all its shareholders. A good part of them come from the benchmark index of the Spanish stock market, the Ibex 35.
- You should not influence this investment model if you do not want to deprive yourself of improving the performance of your personal or family assets. Because for this you have other more effective alternatives for these moments. With all kinds of financial products.