Companies with a long history of dividend growth may not be the key drivers of tomorrow’s dividend growth. We believe one has to be more dynamic in one’s selection criteria to capture the current shifting trend in the U.S. dividend market. Recent evidence bears this out, as we will explain below.
In today’s environment, investors are in an almost constant search of income-producing asset classes. One particular area of focus has been dividend-paying equities—made attractive not only because of the current income but also because of the potential for future growth of that income. We believe the recent trends for dividend growth discussed below have become an unmistakably positive signal for the market’s underlying fundamental value.
For Exchange-Traded Fund (ETF) users and general investors alike, there are an abundance of acronyms, used regularly to define everything from groups of countries and products, to financial and trading terminology. While these terms are crucial to one’s daily understanding, it can often be difficult, confusing even, to keep track of their expanded meanings.
In a recent blog we made the case that investors appear under-allocated to India, based on assets tracking emerging market countries. In this blog, we discuss returns of these various countries, as well as the average annual volatility and diversification potential associated with those returns over time.