Displaying items by tag: dividends

Thursday, 02 December 2021 08:10

Infrastructure Investing: The Pure-Play Advantage

ProShares DJ Brookfield Global Infrastructure ETF (TOLZ) is the only ETF that focuses exclusively on pure-play companies—the owners and operators of infrastructure assets...See More

Published in Eq: Dividends
Thursday, 18 November 2021 15:15

Today’s income investors face a tough choice

Today’s income investors face a tough choice – hold cash and core bonds paying low rates or extend into higher-yielding markets with more risk and less liquidity. See More

Published in Eq: Dividends
Friday, 05 November 2021 18:28

Are Dividend Investors at Risk?

Treasury yields have been on the climb as of late. The 10 year Treasury is up as much as 30 basis points since mid September, and that climb has many dividend investors worried as to the value of the stocks they hold. Most income investors see rising yields challenging the value of income stocks, causing them to fall, but in the 15 times in the post war era that the 10-year has risen 1.5% from its low, the S&P grew by 12% annualized in this stretch. What this current Treasury climb has in common with its predecessors is inflation. The latest PCE posted a 30-year record, and that is being priced into Treasuries, which is eroding the traditional income stream. With realized gains in Treasuries lower than the nominal yields driving headlines, dividend investors might not need to be worried about stock valuations sinking. 


FINSUM: If yields were being driven by growth factors, we might see the more traditional relationship between interest rates and asset prices, but an inflation-driven cycle might not push investors away from dividend equities.

Published in Eq: Dividends
Thursday, 07 October 2021 20:13

Here is the Best Hedge for this Volatility

Whether the US’ current bout of inflation is caused by transitory supply-side factors, or trillions of dollars poured into the economy by policymakers, is irrelevant because investors are now tasked with finding a way through the stock market jitters. As inflation rises it eats at yields and the value of fixed coupons falls. To avoid the pitfalls of rising prices look to dividend stocks, whose yields are pushed higher by inflation. Of course not all dividend stocks are created equal and some will outperform in an inflationary environment. The best income stocks are in the financial sector because they benefit from rising interest rates, as their interest rate margins expand in such environments. Energy is next, at least currently. Higher demand boosts prices of oil and gas, which benefits energy sector investors as it is one of the highest dividend payers. These sectors are the most likely to boost their dividends in the rising price environment.


FINSUM: Dividend stocks have no doubt outperformed just about every segment of the bond market, and expanding your dividend holdings may be a good idea as inflation comes in at 20-year highs. 

Published in Eq: Total Market
Thursday, 26 August 2021 20:48

The Big Gap in ESG Funds

(New York)

ESG has grown exponentially over the last couple of years as trillions of dollars have flowed into the sector. However, as the sector has grown, some gaps in its coverage have emerged. One big glaring hole is in income-focused ESG funds. Traditionally, it has always been thought that an investor who cares about income, just wants income and doesn’t care much where it comes from. This helps explain how out of 439 ESG funds aggregated by Morningstar, only 8 had an income focus.


FINSUM: The lack of ESG income funds makes sense as income-focused products often cater to retirees—the current age of whom generally makes them less interested in ESG. But opportunity awaits.

Published in Eq: Dividends
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