What does the strong dollar mean for dutch investors?

Did US stocks become more expensive? Will dividend increase now? Can someone explain?



Yes, if you buy a US stock now, you pay more in euro. I started on Bux one year ago, and I have (US) positions that are worth more today than a year ago, even though the stock price (in USD) is lower than when I bought. So all because the euro lost around 10% to the dollar. Dividends paid in USD of course are also worth slightly more in euro, so that’s a plus. But keep in mind this trend can (and at some point probably will) reverse. Things to think about when deciding whether to buy US or European stocks right now


Like @yohhst said. You pay more euro’s to buy dollars so that’s more expensive. Positive side is dividend in dollar is worth more and if you already had dollar positions they are also have a higher value in euro’s downside for American stocks which are multinationals they report in dollars and the dollar gained almost on every coin. So their profit in dollars is less which means less profit and that can turn into a sell off and lower valuation. What it means for us. American stocks with dividend are more interesting imo. American stocks without dividend are less attractive. Ideal scenario is I think shell…. You buy with euros and they pay dividend in dollars. I hopes we could help you with it


Yes and technically yes.

Stocks indeed became more expensive for us as Euro people, HOWEVER dividends paid in US dollars also “increased” since you’ll get more EUR for each dollar.

So the drawback is that buying US stocks became more expensive and the bonus became that your existing stocks and dividends became worth more (effectively) due to the high dollar price.



1 Like