Long-term, successful investors, such as stock market legend Warren Buffett, attach great importance to high dividend yields for the selected stocks. For such long-term investors with a more conservative investment strategy, Deutsche Börse calculates the DivDAX (ISIN: DE000A0C33C3), which contains the 15 DAX stocks with the highest dividend yields.
A variety of ETFs, investment certificates and bonds are available for investors who want to benefit directly or indirectly from the performance of the DivDAX, which is constructed as a price index (dividend payments are not taken into account). With the new HVB-Express Plus certificate, investors can earn positive returns in a maximum of five years, even if the index falls significantly.
3.5 percent bonus chance per observation period, falling thresholds
The closing price of the DivDAX set on 9/25/20 is set as the base price for the Express Plus certificate. If on the first observation day (23.11.21) the index is quoted at or above the early redemption level, which is 95 percent of the base price on that day, the certificate will be repaid at EUR 1,035. The early repayment including bonus payment will also be made on the following observation days at annual intervals, even if the index level is weaker. If the DivDAX is quoted on 11/23/22 above the repayment level, which has now been reduced to 90 percent of the base price, the certificate will be repaid at EUR 1,070 per nominal amount of EUR 1,000. The procedure of the repayment thresholds, which decrease by five percent annually, and the bonus payments that increase by 3.50 percent annually, is also used in the remaining years of the term.
If the index is trading at or above the barrier at 65 percent of the strike price on the last observation day (23.11.26), the certificate will be redeemed at its maximum amount of EUR 1,210. If the index is more than 35 percent in the red on this day, the certificate will be redeemed with the negative percentage index development compared to the base price.
The HVB Express Plus certificate on the DivDAX, ISIN: DE000HVB4PK2, maximum term until 30.11.26, can still be subscribed until 24.9.20 with 1,010 euros.
CertificateReport Conclusion: In the next 6 years and 2 months, if the DivDAX price drops by up to 35 percent, this express certificate enables the chance of a gross return of 3.50 percent for each interest period, with the first period extending over 14 months .
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