High Dividends as a Stable Source of Income
- High dividend stocks, especially those from established companies or specialized REITs (Real Estate Investment Trusts), often offer an attractive yield. An example is the REIT “Realty Income”, which, with a dividend yield of about 5.6%, is considered a stable high dividend stock, making it interesting for investors even in a volatile real estate market.
- The financial stability of large companies like Evotec enables them to continue investing in forward-looking projects despite market fluctuations and to expand their market position. This financial robustness supports the ability to pay out stable dividends even in challenging phases.
Market Volatility and Challenges
- Volatile markets with geopolitical tensions or temporarily weaker order intakes can depress sentiment in the short term and cause price declines. For instance, SUESS MicroTec achieved a positive monthly performance (+17.68%) despite a volatile environment, indicating some resilience.
- Nevertheless, fluctuations in prices are common; however, long-term investors often benefit from the regular dividend payouts as a passive source of income.
Relevance for Private Investors
Stable high dividends are particularly attractive for retail investors:
- They provide a passive income regardless of short-term price fluctuations.
- Selecting financially solid companies or specialized funds/REITs can mitigate risks.
- In a volatile market environment, these investments offer some protection through regular payouts.
In summary, stable high dividends are possible even in difficult phases if investors rely on solid business models. This makes them a relevant strategy for private investors to achieve passive income even during market turbulence.