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Dividend Crap: No One Needs Dividends Anymore
We are entering an era where dividends are no longer interesting. Low-margin ideas that companies offer today are already hidden in the closet until better times. Why? This is bad news. It seems that no one thinks about it, but we have come to the conclusion that dividends are no longer desirable. Look at the dividend table. A few years ago, a dividend yield of 7% in less than a year seemed very attractive. But today, such a yield will not surprise anyone. Look at the return of the deposit, neatly written above everyone's favorite three letters. Even the infamous LDQT offers a higher return than dividends. From this point of view, shares are overvalued. As one metallurgist once said, why invest money in a company if you can just deposit money? And in fact, he is right. Judge for yourself. Today, you are investing a huge amount of money in something that will someday bring you additional profit. Profit that you can get right now. Usually, people buying today expect that lower interest rates are inevitable. But if you look at the news and quotes from those involved in this panic, you will see that they have no plans to lower key interest rates this year. Just six months ago, they were talking about the second half of 2024. Everything is cleaner here. They will really raise it. Those. Perhaps we will soon see the key rate above 19%. For example, 20% or 21%. As they say, appetite comes with eating. If you remember, Nabiullina talked about monitoring inflation. Here: Yesterday they talked about a decrease in the rate of inflation, but in fact this is not the case. In turbo mode, the price increases to second gear. And soon they may be in third and fourth gear and guard the seven of us. I am paid just enough to quit my job. And there is still time to implement another block. They also wrote that annual inflation slowed to 8.63% in September from 9.05% in August. So, roughly speaking, the dividend yield does not reflect inflation, and the calculation has not yet taken into account the decline in the share price, which is associated with the board meeting on October 25, 2024. Bank of Russia on key interest rates. This is not good, because it will happen unnoticed before the SmartLab meeting. If you watched, you remember that at the time of this meeting, some 13th case is happening. As a result, interest rates can rise gracefully, and we will all go crazy. However, this is different from investors who put aside 16% per annum. And he added: At the time of the last interest rate increase, it was 18%. It fell by 19% before recovering sharply. According to people calling themselves analysts, the market expected growth to 20, and therefore such growth was perceived as positive. Let's assume that interest rates will continue to rise, because I am sure there are other reasons. I am not talking about paying for SVO now. Some people may say that the stock will be protected from depreciation, but they will not be able to save money by doing so.This was reported by MMK. There is everything that is not very good or not very good. Usually there is only one way out. Find a place to store it. But dividends no longer seem to be the best solution.