May 2025: Strong rise in corporate profits in first quarter
Investors in the Sustainable Dividends Value Fund saw the value of their investment increase by 4.9% in the past month. Slowly but surely, more and more investors seem to be increasingly paying attention to the undervalued European companies that we’ve invested in. And this is clearly paying off. Strong quarterly results for the shares in our fund have certainly contributed to this. On average, corporate profits increased by more than 30% compared to the first quarter of last year. More generally, the stock markets benefited from the postponement of the introduction of high US import tariffs. The European large caps in the MSCI Europe index achieved an average return of 4.7% in May. The current valuation of the shares in our fund is very low at 8 to 9 times the expected cash flow for next year. We see a lot of room for further share price increases if our companies can continue the current positive profit development. Investors in our fund have achieved a return of more than 88% on their investment since its inception in 2016. The counter now stands at 14% return year-to-date in 2025.
Newsletter
The fund
Sustainable Dividends offers an investment fund that invests in a well-diversified portfolio of European companies at the forefront of the sustainability transition. Our focus is on a disciplined investment process, while applying both qualitative and quantitative financial criteria.