Investing €1,000,000 is not an easy decision to make. Indeed, several criteria must be taken into account before investing such a sum, at the risk of losing a lot. Thus, for this year 2016, here are some interesting options available to investors
Focus on the dividend strategy
For 2016, the best investment choice remains stocks on the stock market. With the many high value-added companies, the dividend strategy is particularly profitable. It is only necessary to build up a portfolio of shares with high dividends in order to be able to make significant profits.
Instead of investing its €1,000,000 in a single company, it is more interesting to invest in several companies, which operate in different fields. It consists in offering some protection, in the case of a company’s shares falling in value along the way. Or, in the event that a sector of activity collapses on the market. In order to ensure the company’s sound financial health, it is also necessary to carry out preliminary studies.
What is the growth rate of the company’s turnover over the last 5 years? What is its dividend policy? Is the distribution done regularly and is the rate increasing? These are all questions to ask yourself before investing your money. And of course, the choice will have to be made for companies with both regular and growing dividends, with the best rate of return. And this, over a period of at least 5 years.
Some companies with potential for 2016
Thus, to have a more precise idea of a good investment choice for 2016, these few companies have growth value, high potential or return value:
- Dassault Aviation and its well-filled order book for 2016.
- TF1 and its new management, with diversification programs that could be very profitable for investors.
- Hermès and its turnover growing by 10%, with more than €4 billion in sales in 2014.
- Alstom and its new orders worth €28.7 billion, while a public share sale at a cost of €35 has just been completed in early 2016.
- Nexity and its real estate developer agency, whose net profit was 110 million euros for 2015.
- Eurofins Scientific and its bioanalytical program, which would enable it to reach a turnover of 4 billion euros in 2020.
- The Lagardère Group, which has maintained a stable dividend policy for several years, with a profitability rate of around 5%.
These are, of course, only examples of investment. For those who do not wish to go public, real estate investments are also interesting for 2016.