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Portfolio Discussions

Use select charts from the Guide to the Markets to engage in portfolio discussions.

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Dividend-paying equities

With interest rates still at historic lows, investors can no longer focus exclusively on the bond market for income-generating solutions. Dividend-paying equities can provide investors with income, and rising dividend payout ratios, coupled with a consistently growing economy, could result in attractive returns. But selectivity matters, as some of the highest dividend paying sectors have become expensive.

Economic Expansions and Recessions
Broadening the search for yield: Diversify across asset classes and around the world
  • Dividend-paying stocks are another important source of income. In fact, dividends have historically accounted for over 40% of stock market total returns.
  • Investors might also look abroad for income solutions, as dividend yields on foreign stocks are often higher than those on U.S. stocks. Additionally, dividend yields in many global markets are higher than 10-year sovereign bond yields in their respective countries.
  • Investors could also be well served by diversifying across asset classes. Although REITs have had a strong run, their dividend yields are higher than those of traditional equities.
Discussion Slides
Corporate profits
Corporate financials
Yield alternatives: Domestic and global

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