Pure Dividend Strategy

DJE - Dividende & Substanz provides its investors with access to a global universe of equities with strong substance that offer sustained attractive dividend yields. These are regarded as a sign of quality, as they can only be provided by companies that operate profitably on a sustained basis.

Investors who want to build up and expand their assets face a challenge: equity investments promise attractive returns, but shareholders must expect price fluctuations at any time - and crises often come unexpectedly. Bonds offer more security, but their yields are often so low in the low-interest environment that there is a threat of real losses in value after inflation.

Dividend funds can be a solution. DJE - Dividende & Substanz, launched in 2003, is designed for investors who want to achieve positive returns on the stock market in the long term and at the same time attach importance to current income as well as a price development that is as stable as possible. Led by fund manager Dr. Jan Ehrhardt, the fund pursues an active dividend strategy: it invests worldwide in top-quality companies that are characterised by investor-friendly policies.

Dividends signal earnings power

An important feature of this policy is continuously high or even rising dividends. Companies regularly distribute a portion of their profits to allow their shareholders to participate in the success of the business. These distributions can make up a large part of the total return and stabilise the share's performance. Often these are so-called value stocks: solid securities that are traded relatively cheaply on the stock market.

Most DAX companies and many other European companies pay dividends to their shareholders. In the USA, on the other hand, share buybacks are more widespread: With these "buybacks", companies take their own shares off the market and thereby increase earnings per share, which usually causes the share price to rise. The effect is comparable to the payment of a dividend and is therefore interesting for DJE - Dividende & Substanz - in both cases companies want to signal their earnings power and retain shareholders.

A portfolio with substance

The actively managed DJE - Dividende & Substanz takes advantage of this effect by investing in 70 to 100 high-substance stocks that offer consistently attractive dividend yields. Companies in the fund portfolio should regularly pass on between 40% and 60% of their profits to shareholders as dividends. These payments should be covered by free cashflow, i.e. from the profit generated, because companies must also be able to afford their dividends. Only sustainably profitable companies can afford this - stable distributions therefore are a quality signal.

In addition, the fund management pays attention to an investor-friendly corporate policy with capital returns and share buybacks. Long-term megatrends such as digitalisation and urbanisation, which promise sustainable growth, are incorporated into the analyses. In addition, ESG sustainability criteria for environmental, social and good corporate governance are firmly integrated into the investment process.

Independent analysis

DJE - Dividende & Substanz provides its investors with access to a global equity universe of around 2,500 individual stocks. In order to find the most promising dividend stocks, the fund consistently relies on in-house research and a proven investment process - independent of benchmark indices, sector or country specifications. The DJE experts combine top-down and bottom-up analyses in order to obtain a comprehensive picture of the general market situation and the companies.

On the company side, key earnings figures are analysed for this purpose, as is a comprehensive range of balance sheet ratios. In addition to examining company data, the fund managers and analysts hold personal discussions with the management of the companies. This gives them a personal impression of their strategy, market environment and prospects for success.

A strong track record

Dividend stocks are suitable for many investors with the appropriate risk tolerance thanks to their current income and defensive characteristics. However, selecting suitable stocks and monitoring them on an ongoing basis requires a high level of professional expertise. As an actively and independently managed fund solution, DJE - Dividende & Substanz is thus a good choice for investors who want a conservative equity strategy with the most stable performance possible and low price setbacks. Thanks to its strong track record, the fund now manages investor assets of around €1.4 billion.  

Fund profile of DJE – Dividende & Substanz


Note: All information published is for your information only and does not constitute investment advice or other recommendation. Long-term experience and awards do not guarantee investment success. Securities are subject to market-related price fluctuations which may not be compensated for by the active management of the asset manager or investment advisor. This information cannot replace a consultation. All information has been provided with care and to the best of our knowledge at the time of preparation. Despite all due care, the data may have changed in the meantime. Further information on opportunities and risks can be found on the website www.dje.de. The sales prospectus and further information are available free of charge in German from DJE Investment S.A. or at www.dje.de The fund management company is DJE Investment S.A. DJE Kapital AG is the distribution agent.