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Hi
It's true that we talk less about high yields here because growing dividends are favored.
The problem with high yields is that they often reflect difficulties, temporary or not, of the company, with a drop in profits, accompanied by a fall in the share price, and ultimately a reduction or cut in the dividend (with the consequence of an even more violent fall in the share price). This is not always the case, but history has shown that this is often how it happens.In short, I'm still going to play this game and make my little selection:
– ARLP: 10.8%: it is an MLP, a coal producer in the US, in difficulty like all energy companies at the moment. Sensitive souls should abstain: very volatile and in a bearish phase.
– DEM: 5.2%: Emerging market high yield equity ETF, like energy, under pressure at the momentInteresting yield, payout ratio (still) correct, dividend growth also correct, but be careful: the yield is interesting because the price is in free fall (it actually reflects the profits which are also in a downward phase)
all this embellished with a nice volatility…
So only play if you have strong nerves and you have a very long-term perspective, because in the short term it could be quite a shake-up.it's done, I turned you into a contributor 🙂
looking forward to seeing you trading apricots and petite arvine…Hi Laurent
coincidence or not, I came across your blog yesterday while googling.
A trader who lives in Nendaz is original 😉
If you like, I'll open a contributor account for you: http://www.dividendes.ch/membre-contributeur/
your life story may be of interest to my readers, even if our investment methods differ significantly.Come to Switzerland, I tell you. Here, the value of work is important. There are also profiteering slackers, but they're not in the majority. And above all, they're quick to spot, label and point the finger.
Incidentally, regarding the transfer of securities, I had been able to negotiate with Postfinance to pay part of the transfer fees (which the other broker was charging me).A country's wealth has always been created by the "little guys", the hard-working ants. Never via the political cicadas.
In France, there are too many cicadas compared with ants.Interesting yes thank you, but beware this video is from March and these companies' dividends have all already been paid for this year.
And there's no guarantee that it'll be the same next year.
Incidentally, I'm surprised that all these SMI blue-chips (see video at 3:16) have simultaneously resorted to this practice... I wonder if that's really the case. Can anyone who owns these stocks confirm this?Hello Gregory
First of all, it's important to understand that I use REITs and MLPs as a hedging strategy.
Just a reminder here: http://www.dividendes.ch/2013/11/les-strategies-de-dividendes-croissants/
It's a riskier strategy than the Global Dividend Growers, more volatile, in fact the most volatile of my 4 strategies.
So reserve this for investors with stronger nerves and who already have several fund values in their portfolio.
TOO's fundamentals are not at their best. The stock is bearing the brunt of falling oil prices.
But paradoxically, that's why it's so interesting: it allows us to hedge against variations in the dollar (which is inversely correlated with the dollar).
Here's a reminder: http://www.dividendes.ch/2011/12/actions-en-devises-etrangeres-et-risque-de-monnaie-12/
I recently acquired XOM and BP for the same reasons. I'm counting on a long-term rise in the price of oil, which will cover my numerous positions in dollars, a structurally weak currency.The 4 stars therefore reflect this quality of hedging against currency risk, combined with relatively low volatility in our reference currency CHF (I say relatively, because REITs and MLPs are quite volatile by nature). Of course, the high dividend is also attractive, but this carries a risk due to declining earnings. We must therefore consider the drop in share price and the increase in yield as a premium for the risk taken by the investor. In other words, the dividend cut is already anticipated in the current share price. In the end, that's my opinion.
The rating is updated every weekend. On the other hand, your question tells me that I should be stricter on the rating for this strategy, to reflect its riskier aspect. I'll see how I can put this into practice.
because rising dividends beat the equity market
http://www.dividendes.ch/2011/05/ces-dividendes-croissants-qui-battent-le-marche-13/
and that the equity market is outperforming the real estate market (historical average return of around 10% for equities, about half that for real estate).
I buy direct and I rent, but I also have real estate funds and REITs.Each stock is influenced to a greater or lesser extent by the market (which is reflected in its beta). A stock with a high beta, even one with a low P/E, can fall, just because its friends are falling too. Of course, if its fundamentals are good (which is not always the case with a low P/E), it will fall less than the market, and more importantly, it will rise faster.
The market view gives a global overview, while the PER or other valuation indicators give an individual view. The two views complement each other.another useful link:
http://www.dividendes.ch/forum-2/dividendes/questions-quand-on-commence-en-bourse/how much to start with... let's say you follow the rule of no more than 1% in transaction fees, so I'll let you do the math based on your broker's fees in relation to your first purchase
DEGIRO I don't know at all, not known in Switzerland.
price as such is meaningless
a share at USD 15 is no cheaper than one at USD 30
always compare the price with a benchmark: profit, dividend, book value...
