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Dividend Study 2025 - Investment Income
Investment income is gaining importance as a supplementary source of income. With increasing life expectancy and a shrinking workforce, it is becoming more common for one's income to be complemented by investment income.
Find out how this study explores the potential contribution of dividends from investment.
Key takeaways:
- Our analysis indicates that dividends have historically played a significant role in the overall return on equities. In fact, they demonstrate more consistency than corporate profits. In other words, companies tend to maintain their dividend policy once adopted and are more likely to increase dividends than reduce them. Furthermore, our calculations indicate that equities issued by companies that distribute dividends proved to be less volatile than those issued by companies that do not pay dividends.
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Thanks to their consistency and their significant contribution to total returns, dividends provide a suitable means of generating additional income from your investments.
So, let your money work for you!
“As a rule of thumb, dividend payments exhibit significantly less volatility than corporate earnings and to a much lesser extent than even equity prices themselves. By definition, they cannot fall below zero, either; in the worst case, they may simply not be paid out."
Dr Hans-Jörg Naumer
Director Global Capital Markets & Thematic Research
