Some investors prefer to include stocks with a very high dividend yield in their portfolio. This guarantees an annual pension. Can we therefore say that an exceptional dividend is an excellent investment incentive?
In some respects, yes, as it guarantees a fixed income. However, it should not be forgotten that when the dividend is paid the value of the share is “adjusted” and quoted ex-dividend. This means that if a stock quoted 10 euros and detaches a dividend of 0.5 euros, its value will be corrected to 9.5 euros.
Buying a stock with an excellent dividend potential in advance, therefore, has the advantage that the prices could rise as the ex-dividend date approaches.
Currently in Piazza Affari a stock that has a very good dividend yield is Banca Profilo. In fact, if we consider the € 0.031 dividend paid on the year 2022 and the current prices, we find that the yield is around 15%. A very unusual and very interesting level.
For an overview of Banca Profilo’s evaluation, please refer to a previous report.
Is a great dividend a great investment incentive?
The title Bank Profile (MIL: BPRO) closed the session on 20 September at € 0.193, unchanged from the previous session.
The current projection is bearish, but since the end of August a lateral phase has begun that is leading prices to fluctuate near the intermediate support in ares at 0.1918 euro. In any case, the stock could be directed towards the 1st price target in the 0.1846 euro area (1st price target). Then, the other bearish targets could be placed in the 0.1657 euro area (II price target) and 0.1468 euro (III price target).
Only a daily close of more than 0.1963 euro could give direction to the prices.
What to wait on the markets tomorrow?