Undoubtedly, one of the strategies you can use in equities is to opt for the securities that distribute dividends among their shareholders. Not surprisingly, the Spanish stock market is one of the places that offers the highest dividend yield at the moment. But it is that also during 2018 more than half of listed companies will increase it. It is undoubtedly good news that will encourage you to enter the equity markets. Because you will be in better conditions to clean up your checking account balance from the next few months.
Nor can you forget that this is a criterion that is chosen by a good part of the managers to build your investment portfolios. Dividend yields on domestic equities oscillate below margins that range from from 3% to 9%. With a wide range of proposals to satisfy your demand with all possible guarantees. With all the sectors represented in this special section. Electric companies, banks, telecommunications companies, insurance companies and ultimately a long list so that you can select the best proposal from this precise moment.
Within this approach in the money sector, you should not forget that very diversified options are present. In what is excellent investment opportunities, which generally offer good, high and sustainable dividends. It is a very original strategy to create a fixed income within the variable. As a more than real alternative to banking products (term deposits, promissory notes, high-income accounts, etc.). In all cases, they rarely exceed levels of 1,50%. Dividends, on the other hand, at least triple these returns to savings. In a safe and effective way.
Dividends in large companies
These distributions to shareholders are materialized mainly by the large values of the selective index of the national stock market, the Ibex 35. Because in effect, most of them offer you these amounts at the time of opening positions. In companies that are blue chips such as Repsol, Banco Santander, BBVA, Endesa or Iberdrola. But also in others of special relevance such as Ferrovial or Inditex. In any case, you will not have any kind of problems to execute this strategy in investment. Just decision to carry it out effectively.
Dividends, on the other hand, are not exclusive to the first index of national equities. If not, on the contrary, they are also present in other mid-cap companies. Although of course your offer will not be as numerous and in cases rewarding as in the first ones. You will receive this charge in your checking account a few days after they become effective. So you can enjoy a little more liquidity to meet some of your most basic needs. Or at least to allow yourself a little whim regarding personal consumption.
What are their characteristics?
When talking about dividends we are dealing with a peculiar way of understanding the stock market. Where what matters most is a safe and stable investment. Above other technical and even fundamental considerations. Do not forget it if you want to plan your movements from now on. Because there is a lot that this special reward can bring you. With benefits like the ones we expose you below.
- They will help you go developing a savings bag year after year. To the extent that it can help you supplement your regular income. To get out of more than one rush at the end of the month, in short.
- In this fixed and insured charge that will be formed without depending on the fluctuations of the equity markets. In this sense, it has much more to do with fixed income than with variable income. It is a subtle difference that you should take into account if you opt for this investment strategy.
- You have as many proposals as you want since the list of values that provide this characteristic is more than remarkable. With the representation of all stock market sectors so you can make the decision with less hassle.
- It is a way of endowing yourself with greater liquidity without having to part with the investment at any time. To the point that you can keep the stocks in the portfolio for as long as you say depending on your financial needs. You choose the terms of stay yourself. Short, medium or long.
Total return on the stock market
On the other hand, you cannot forget that dividends are a very interesting option to gradually create a more or less stable savings bag. Not surprisingly, it represents almost half of the total profitability that we obtain on the stock market. Being a very beneficial strategy for periods of certain instability in the equity markets. Because in these months they provide liquidity at all times to your checking account. Although the evolution of the stock market is not as you expected it from the beginning.
From this general scenario, dividends are formed as a way to achieve profitability in turbulent periods in times of economic crisis. You will always get money for your investments in the stock market. With shareholder remuneration that can reach almost 10% in the most aggressive proposals of the national selective index. A percentage that is very difficult to achieve even through the most aggressive financial products of equities. With payments to your account that can be annual, semi-annual or quarterly, depending on the strategies used by listed companies.
A rising payment in 2018
This year that we have just greeted is presented as very positive for small and medium investors who are going to opt for this model in saving. Among other reasons because in this exercise more than 70% of companies have increased dividends. To the extent that it becomes a criterion used by more and more managers to develop their respective investment portfolios. Considering that it is a growing and sustainable system over time. As stated by a good part of financial analysts, prosecuting this kind of operations in financial markets.
On the contrary, dividends is a way of investing that does not allow you to generate profits quickly and in a few trading sessions. Not surprisingly, they require a longer term of permanence than in other investment guidelines. Even in a hereditary way, as happened to your parents or grandparents in other times when security prevailed over risks or other technical or fundamental approaches. Never for traders who want to accumulate their earnings in the shortest amount of time possible. Beyond the very characteristics of the value.
Incompatible with quick wins
Of course, the securities that distribute dividends to their shareholders are companies with proven solvency. Because for them to give this compensation they have to have benefits in their business accounts. Without this requirement, there is no possibility of rewarding shareholders with a payment of these characteristics. So it is a reason for these values give you more confidence from now on. What you will never find will be speculative companies or at least those known as chicharros. Because none of them will have this subscription to investors.
They generally come from companies that present solid business or online expansion. This is an important difference that distinguishes these companies listed in equities. From this perspective you can rest assured that you will not be before great oscillations in their prices and their volatility will be more or less controlled. Because above all we are talking about very stable companies. They come from sectors as relevant as electricity, highways, financial services, insurance or steel companies among some of them.
Develop an accurate strategy
You can also choose to collect dividends and wait a few years for your shares to appreciate before undoing the positions. Even to return to another value of these same characteristics as a repetition of the investment strategy. In any case, there are many and diverse systems that you can use now to benefit from this very gratifying contribution for many small and medium investors. It just required a little patience and many doses of perseverance in carrying out this task in your relationships with the always complicated world of money.
Beyond these very special approaches, you can also abandon positions at the precise moment when the amount is debited from the savings account. To stay in the equity markets or simply give yourself a few days off. To try to detect all the business opportunities that are generated from now on. Something that will certainly occur, even in the most unstable situations for equities. On the other hand, you can always choose when is the most appropriate time to opt for this kind of strategy in the stock market. With a wide range of approaches in the ways of operating.