November 2022
Strong quarterly figures from our companies ensured another good month for investors in the fund. The fund value rose by 5.3% after almost all of our stocks showed a positive return. Despite this, the companies in the fund are still listed on the stock exchange at a price significantly lower than what these companies are really worth. We see an average price potential for our shares of more than 70% in the medium term. And with an average valuation of less than 7 times expected cash flow, our sustainable businesses have never been cheaper. The dividend yield of the shares is above 4%, which is also a very attractive level compared to the past. All in all, these are good prospects for those who dare to bite through the sour apple of a probably temporary dip in stock prices. There are now clear indications that we are past the peak of inflation, which means that central banks will be less aggressive in raising interest rates. This will restore investor optimism. The prices of large European companies rose on average by 6.9% (MSCI Europe Index). Medium-sized companies saw a share price increase of 6.5% (MSCI Europe Mid Cap Index) and small companies an average of 6.3% (MSCI Europe Small Cap Index).
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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.