Unattractive Telecommunications Companies And Utilities

According to the study DSW dividends paid by companies listed on the DAX this year, more than 27 billion euros in dividends. Europe should be there according to an estimate of M & G about 200 billion euros dividend. Currently pay the highest dividends telecommunications companies and utilities. Nevertheless, advises Stuart Rhodes dividend-oriented investors to other investments: telecommunications companies and utilities are strictly regulated and have little prospects for growth.

Instead the manager of the M & G Global Dividend Fund to buy shares of companies with long-term growth prospects. In his opinion, can only growing companies achieve long-term dividend growth. For this reason, he put on consumer titles. The major international companies such as Nestle would promise long-term growth, regardless of the current economic environment. This allows them to increase their dividends each year.

Also, bank stocks, the fund manager increased the portfolio again. While he was still skeptical because of the fluctuations, but the industry is large and diverse. Therefore, he found more promising dividend payers, such as the Asset Management BlackRock.

Overall, Rhodes believes that financial firms increase their dividends in the future: This would ultimately have positive effects on stock prices of companies.