Dividend strategies are seen as one of the classic investment strategies especially, but not only, for income-oriented investors. Therefore, it is worthwhile to shed some light on the most common strategies. As companies mature, they often start to use parts of their revenue to pay dividends to their shareholders since they may not need that capital to finance future growth. There are mainly two ways to distribute dividends to the shareholder. The first way is share buybacks, where the company buys back its own shares, resulting in higher earnings-per-share (EPS) as the number of shares outstanding is shrinking. The second

Value investing is an investment strategy where the investor is buying securities which he thinks are worth more than their current price. This means the current price on the exchange is lower than the intrinsic or book value of the respective security. These evaluations are called fundamental analysis and are mostly derived from the current balance sheet and the respective quarterly updates. Some of the more prominent measures used by value investors to determine if a company’s stock is a value investment are: – price-to-book ratio – earnings-per-share – free cash flow – dividend yield Obviously, there are many other