Use the Guide
Browse the Guide
Portfolio Discussions
Dr. Kelly's Review
Use the Guide
Guide to Retirement
Discussions
Client Presentation
Headlines
Employment & the Fed
Navigating fiscal uncertainty
European Markets
U.S. Recovery
Headlines
Employment & the Fed
Navigating fiscal uncertainty
European Markets
U.S. Recovery
Featured Topics
Fixed Income
Income Opportunities
U.S. Equities
Global Growth
Looking for other topics? Visit the Library
Choose a Shortcut
Home Insights Guide to the Markets Portfolio Discussions

Portfolio Discussions

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

  • Download the Guide
     
    GTM Thumb
    Guide to the Markets
     
    Guide to the Markets - Monthly Update
     
    GTM On The Bench
    "On the Bench Appendix"
     
 
Download Problems? Click here

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 & leverage
Deploying corporate cash
Yield alternatives: Domestic and global

Download Discussion