A time-tested strategy, this approach to investing has stood the test of time.
Long-Term Investing with Dividends: A Timeless Strategy
Every year, during the shareholder meeting season, dividends are one of the most discussed topics among investors. This highlights the enduring appeal of long-term investing with dividends. In today’s volatile market environment, this “safe and steady” approach becomes even more valuable.
Vietnam’s stock market offers a range of stocks with a history of high dividend payouts, reaching tens or even hundreds of percent. Numerous stocks provide dividend yields that surpass bank savings rates, including well-known names such as VNM, SAB, BMP, DP3, SLS, VEA, HLB, and PAT. These “golden goose” dividend stocks can be found across all three exchanges, ranging from blue-chip to mid-cap and penny stocks.
Note: Dividend yield is the percentage of a stock’s annual dividend compared to its market price. It indicates the return an investor receives from dividends relative to the stock price.
Fundamentally, consistent high dividend payouts reflect a company’s financial health. Stable dividend policies are often maintained by companies with strong financial performance. Stable or growing profits over time can also drive stock price appreciation. Thus, long-term investors can reap dual benefits from dividends and capital gains.
KIM Vietnam Launches KDEF Fund: A Dividend Fund for Long-Term Investors
Recognizing the trend towards safe and stable investing, KIM Vietnam Asset Management has officially launched the KIM Vietnam Equity Dividend & Growth Fund (KDEF) – the first open-ended domestic fund in the KIM Vietnam ecosystem. With a dual strategy focusing on both dividend and growth stocks, KDEF targets leading companies with attractive dividend yields, strong cash flow, and long-term growth potential.
According to KIM Vietnam: “The companies in KDEF’s portfolio not only have a track record of consistent dividends but are also industry leaders with strong financial positions and clear business prospects. Investing in such stocks enables the fund to generate stable cash flow for reinvestment, delivering consistent growth to investors over the long term.”
Dividend equity funds appeal to investors who prioritize safety and sustainable growth. In contrast, growth equity funds invest in companies with high price appreciation potential to maximize net asset value (NAV) over the long term. Dividend funds offer lower volatility, while growth funds carry higher risks but also provide higher return potential.
This distinction clearly shows that dividend equity funds are favored by long-term investors seeking to accumulate wealth. According to experts, short-term market volatility due to global uncertainties (trade tensions, geopolitical issues, etc.) presents attractive long-term investment opportunities. It is also an opportune moment to identify resilient companies with strong financial positions, making it an ideal time for investors to embrace the “safe and steady” strategy with dividends.
Investing in dividend equity funds provides a double assurance for investors. The stocks included in the portfolio are industry leaders with solid financials, stable cash flow, promising business prospects, and a history of consistent dividend payouts. Additionally, the portfolio is managed by a highly skilled and experienced team focused on optimizing investment returns.
The “Dividend Fund” Arena Heats Up: Long-Term Wealth Accumulation Gains Traction
Prior to KIM Vietnam, prominent market players such as Dragon Capital, VinaCapital, VCBF, and UOBAM have also introduced open-ended funds with a dividend focus. However, each fund employs distinct investment strategies and asset allocations – some prioritize periodic income, while others combine stocks and bonds to balance risk.
KDEF, offered by KIM Vietnam, stands out with its dual strategy, focusing purely on stocks: it targets companies with both high and stable dividend payouts and long-term sustainable growth potential. Instead of distributing dividends, KDEF reinvests all received dividends back into the fund, continuously accumulating assets and maximizing NAV for investors over time. This unique approach aligns with the trend of intelligent and stable wealth accumulation, especially in a dynamic market environment.
The Alabaster Fund: Profits That Aren’t Closely Monitored Are Heavenly Gains Turned to Dust!
“With a wealth of experience in the investment world, Ms. Le Diep Kieu Trang, Chairman of Alabaster Investment Fund, emphasizes the importance of basing every buy and sell decision on accurate, meticulously analyzed, and evaluated information. She cautions against allowing greed to drive investment choices, advocating instead for a foundation built on data and logical analysis.”
How do businesses thrive with huge dividend payouts?
Some companies offer a high dividend yield of up to 100%, which includes both cash and stock payments.
