Investment Advisor Issues Caution: Steer Clear of These Dividend Stocks; Buy them Instead
Renowned market strategist Robert Halver of Baader Bank has urged investors to consider **dividend stocks** for long-term investments, particularly those from sectors demonstrating steady earnings growth and reasonable payout ratios.
Halver advocates for stocks with **steady and growing dividends**, emphasising companies that have a history of increasing profits, maintain manageable payout ratios (often below 80% of free cash flow), and have room to further increase dividends. He tends to avoid banking stocks due to less attractive earnings prospects, favouring insurance companies within the financial sector instead.
Halver sees attractive dividend stocks across various sectors, including healthcare & pharmaceuticals, industrials & industrial conglomerates, and insurance companies. He believes that despite recent crashes in some healthcare stocks, the sector holds long-term value due to growth prospects and dividend potential. Companies that have demonstrated long-term profit growth with stable dividends are particularly appealing in the industrials sector. Insurance companies are favoured for their dividend stability and earnings growth, making them a preferred choice over banks.
Halver remains optimistic about the overall outlook for **German equities** in the medium to long term, encouraging investors to buy on price weakness, especially given ongoing geopolitical and trade uncertainties that still leave room for market corrections but not catastrophic declines. He suggests that significant price declines should be used for additional purchases in these sectors, reflecting a strategy of buying quality dividend stocks during market dips.
Trade tariffs, particularly U.S. tariffs on imports, are expected to remain elevated, potentially dampening earnings growth. However, Halver believes that this environment creates opportunities to buy solid dividend-paying stocks at discounts. Despite the volatility related to geopolitical factors and trade tensions, German and European markets have shown resilience, with notable gains in the first half of 2025.
Investors may need to make adjustments due to potential dividend cuts in European stocks, according to Halver. However, he identifies sectors in the consumer area, pharmaceutical area, and insurance area as having attractive, stable stocks.
For more insights on Robert Halver's specific investments, viewers can watch the full interview on the BÖRSE ONLINE YouTube channel. Halver considers dividend stocks as a source of additional income, and his primary focus for investing in stocks now is on US dividend stocks.
Halver suggests that long-term investors consider purchasing stocks with steady and growing dividends, especially those from sectors like healthcare & pharmaceuticals, industrials & industrial conglomerates, and insurance companies, as they hold promising growth prospects and dividend potential. Additionally, he encourages investors to look into US dividend stocks as his primary focus for investing in stocks at present.
