If you want to know about the stock exchange, here William Savary explains the services and functions of the stock exchange.
1 | what is the dividend strategy?The dividend strategy is an equity investment approach that invests investors in companies that pay out a large portion of their profits to shareholders each year .
This profit distribution from a stock corporation to its investors is called a "dividend".
Those who manage to do so over 25 years can count themselves among the dividend aristocrats.
But beware: There are only 15 individual titles in the DivDAX - so there is no sufficient risk distribution guaranteed!Stock Market Trading Education Noida2 | Where does the dividend strategy come from?The inventors of the dividend strategy are Michael B. O'Higgins and Benjamin Graham.
The difference between the two investors is that Graham simply selects the stocks with the highest dividend yield, while O'Higgins filters out those stocks with the lowest price.3 | Advantage of the dividend strategyHigh dividend companies tend to be companies that are financially sound and therefore considered to be very reliable - for example, CocaCola, McDonald's, Procter & Gamble or 3M.
If you hold these stocks in your portfolio, you can be pretty sure that you will not suffer a total loss or go through huge price swings.4 | Disadvantage of the dividend strategyHowever, because dividend strategists only select certain company stocks, they use stock picking.