History shows that investing in dividend stocks has offered superior returns compared to the average returns on equity markets. The Manager believes the reasons for this outperformance can be considered structural. Regular dividend payments enforce discipline on the management of companies. The obligation to pay a substantial part of the profits as dividends to the owners of a firm, stimulates a more disciplined behaviour with the management. There is simply less money available for investments with a low return, or for making too expensive acquisitions. Furthermore it is important to make sure dividends are growing from one year to the other, as it is a signal of growing profits and a successful business model. Dividends should be sustainable, with means also available in the future. Therefore it is important that companies have a business model, which is still profitable five to ten years from now.

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