As a unique investment approach, the Dividend Low Volatility Strategy aims to bring stable returns to investors through the selection of specific listed companies**. The core idea behind this strategy is to combine the company's profitability and share price volatility to achieve the best mix of investments.
First of all, the dividend low volatility strategy is prepared with companies that can provide high dividends in the long run. These companies are usually divided into two categories. The first category is the leading companies in mature industries, which have stable performance and can continue to provide shareholders with strong dividend returns. Such companies are commonly found in sectors such as utilities and are considered to:"Cash cows"。The second category is those companies that have high dividend yields due to large share prices, known as dividend yield traps. To avoid this, the Dividend Low Volatility strategy introduces a low volatility factor that excludes companies whose stock prices fluctuate significantly.
The key to a low-volatility dividend strategy is to find companies with relatively low share prices, but little volatility over the long term. Such companies are often wrongly killed by the market or are at the bottom of a cyclical industry. In this way, investors can buy** when the stock price is low**, enjoy a stable dividend income, and realize capital appreciation when the stock price** is realized.
Another advantage of this strategy is that when the stock price starts to accelerate** and volatility increases, the low volatility factor excludes these **, thus avoiding participation in potentially high-risk speculation. Therefore, the dividend low volatility strategy is relatively robust and can help investors obtain certain returns in the early stages, rather than participating in the entire cycle.
Overall, the low-volatility dividend strategy provides a relatively stable investment option with a focus on long-term returns. By selecting those that offer high dividends and low volatility**, this strategy provides investors with a double benefit: stable dividends and capital appreciation from share prices**. It is an investment method worth considering for investors who are looking for stable returns.
This article was first published in the interpretation of the financial outlet, if there is **, please indicate the source.