Dividends on investments in stock exchange groups

Dusseldorf When prices are volatile, investors do well with companies that often raise their dividends and never lower them. The investment philosophy behind it is: Price gains can disappear again, once distributed dividends cannot.

Over time, the dividends can more than offset the original purchase price. Example BAT: Anyone who bought shares in the cigarette manufacturer British American Tobacco (BAT) for EUR 5,000 20 years ago has since received more than EUR 25,000 with the help of dividends alone. Now, BAT stocks aren’t for everyone, and beyond ethical concerns, there are a few pitfalls to avoid when it comes to dividend strategy.