Tag Archives: Dividend Aristocrats

A Case for Dividend Growth Strategies Part 1

There are two major types of dividend strategies: Dividend growers: those targeting stocks that consistently grow their dividends over time High dividend yielders: those focusing on stocks that pay a high dividend yield In our paper “A Case for Dividend Growth Strategies,” we compared dividend growth strategies to high-dividend-yielding strategies and concluded that dividend growers, Read more […]

Dividend Growers vs High Dividend Yielders: How They Compared as Interest Rates Rose

There are generally two types of dividend strategies: Dividend growers: Those targeting stocks that consistently grow their dividends over time High dividend yielders: Those focusing on stocks that pay a high dividend yield Not all dividend strategies are created equal These dividend strategies are constructed differently and may be used to accomplish different objectives. For Read more […]

Why Consistency of Dividend Growth Matters

With anemic global economic growth, investors have become leery about U.S. companies’ ability to grow earnings and increase dividends. Indeed, S&P 500 earnings declined for the fifth consecutive period in the second quarter of 2016 and even if the third quarter results are positive, the growth rate is likely to be very small. A potential Read more […]

Consistency: What Rolling Returns Say About Dividend Aristocrats

Historically, three-year rolling returns have revealed consistent outperformance from the S&P 500® Dividend Aristocrats® Index, which is composed of quality companies with at least 25 consecutive years of dividend growth. Why look at rolling returns? Rolling returns offer a more robust way to show performance than traditional one-, three-, five- and ten-year trailing returns. Rolling Read more […]

When Smart Beta Fails

How should an investor in a factor (or “smart beta”) index judge its performance?  In this respect at least, smart beta is like any other strategy: you should evaluate it against the claims that its vendors made before you bought it. This requires some subtlety.  Smart beta methodologies pick stocks based on fundamental or technical Read more […]

The Hunt for Consistent Income

The hunt for stable income is an increasingly challenging task.  Bond yields across major fixed income markets are at historically low levels, with some of the central banks in developed countries even going as far as adopting a negative rates policy.  Together with an aging population that is living longer and relies predominantly on fixed Read more […]

No Big Deal

Twenty years from now, some bright young analyst looking at data for the U.S. stock market could be excused for thinking that the S&P 500’s 2.4% total return for October 2014 was no big deal – just one more routine good month in a long bull run.  If the analyst is particularly inquisitive, he might Read more […]

The Best Offense

Some American football coaches are fond of citing the maxim that the best offense is a good defense — because even if your offense is having an unproductive day, a good defense means that you’re always in the game. A related principle applies to investing — in some environments, the best way to win is Read more […]

Why U.S. Investors Are Turning to Europe

The New York-listed iShares Europe 350 ETF has more than doubled in size in the past six months; the front page of last Friday’s Financial Times reported that U.S. purchases of European equities have surged, while the Wall Street Journal noted yesterday that “Europe is back.” European equities have underperformed U.S. equities by around 45% Read more […]

Low Dispersion Implies Low Value Added

Understanding a market’s dispersion provides important insights into its internal dynamics and the opportunities and pitfalls that might await both active and passive investors.  Dispersion measures the average difference between the return of an index and the return of each of the index’s components.  In times of high dispersion, the gap between the best performers Read more […]