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Dividends
 

Shareholders share in a company's profits through dividend payments. These make up a large part of the total return that shareholders make in the long term. Dividend is therefore of great importance when assessing an investment. 

Dividends are paid by companies from their free cash flow or available reserves. The management of companies that consider profit sharing to shareholders is often more disciplined in assessing investments. 

Historical research has shown that long-term returns on dividend-paying companies are much higher than those that do not pay. Moreover, the returns of companies that manage to grow their dividend year in and year out are even more attractive in the long term. These companies generate reliable cash flows and earn the trust of investors, which increases their share price. 

They are able to pay off debts (if any), make profitable new investments, and buy back shares. All things that, in addition to the dividend, can ensure a high and reliable shareholder return. 

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