Dividends are a tool that both income-seeking and capital growth-seeking equity investors can use. As populations are aging in most developed countries, as well as in large emerging nations such as China, the investment priorities of people nearing or in retirement tend to be skewed more toward income-generation and capital preservation than capital appreciation.
These issues, in turn, have fuelled a global investor flight to less volatile, perceived ‘safer’ assets, driving demand for government bonds, higher-quality corporate credit and stable, high-dividend-paying equities.
Additionally, the yield that dividends can add to a portfolio cannot be underestimated by investors who are looking for capital growth, as dividends represent a significant part of total return. Over the past ten years, reinvested dividend income has accounted for approximately 50% of returns of the FTSE All-Share index.
A quality overlay can further improve the yield of an equity income strategy by avoiding speculative growth and value traps with poor fundamentals and weak growth prospects.
Join experts from Legal & General Investment Management’s ETF team and FTSE Russell as they discuss:
• How to identify equity with strong dividend characteristics
• The construction of the FTSE Dividend Growth with Quality Index Series
• Perspectives for global equity income
• Potential benefits of achieving such exposure via an ETF
* Note that this webinar is addressed exclusively to professional investors in EMEA and/or jurisdictions where the mentioned investment products are approved for distribution.