Fund Managers Now Purchasing These Dividend Shares: Allianz, Deutsche Telekom, and Others Statedacquisition
Going for Gold: Fund Manager Schüssler's Top Picks for Reliable Dividend Stocks
German fund manager Thomas Schüssler is known for helming the DWS Top Dividende, a popular dividend fund. But what stocks is he eyeing now? Let's dive in!
Allianz, Deutsche Telekom, and More: Schüssler's Top Tier Dividend Picks
When it comes to dividend stocks, Schüssler is all about the fundamentals: "We're not just grabbing dividends; we're going for solid companies that can hold their own in tough times." He looks for firms whose models remain robust during slow economic phases and whose dividends can withstand market turbulence.
In his sights are prominent German players like Deutsche Telekom and Allianz. These stocks don't just offer appealing dividend yields, but they also boast robust business models and long-term viability. "Deutsche Telekom's dividend hovers around 3%, while Allianz is a high-yielding dividend stalwart, sitting at roughly 5%," Schüssler neatly explains. So, why the German focus in a globally-orientated fund? It's all about the quality, Schüssler stresses.
Craving more insights? Check this out: WHAT'S WHIPPING UP THE STOCK MARKET / These Dividend Stocks Schüssler is betting on
Watch out for the Big Yields: Schüssler's Warning on Risky Stocks
While Schüssler is all for a good return, he warns against stocks with overly high dividend yields. "High yields can be red flags," he cautions. These stocks may be hiding financial troubles or questionable dividend policies that could later lead to reductions in the dividend payout.
Schüssler practices a balanced approach: "I go for yields between 3 and 4%, maxing out at 5%, anything higher, and the risk becomes too great." He's even burnt his fingers with companies like Taiwan Semiconductor, which saw skyrocketing prices followed by a significant reduction in dividend yield.
Curious about Schüssler's current stocks and his take on the stock market? Find out here.
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In line with his approach, Schüssler advocates for investing in companies with robust business models, such as Deutsche Telekom and Allianz, that offer stable dividend yields. However, Schüssler warns against stocks with excessively high dividend yields, as they might indicate financial instability or questionable dividend policies, potentially leading to reductions in the dividend payout.
