Richardcyoung.com

The Online Home of Author and Investor, Dick Young

  • Home
  • How We Are Different
  • Debbie Young
  • About Us
    • Foundation Principles
    • Contributors
  • Investing
    • You’ve Read The Last Issue of Intelligence Report, Now What?
  • Your Survival Guy
  • The Great Reset
  • The Swiss Way
  • My Rifles
  • Dividends and Compounding
  • Your Security
  • Dick Young
  • Key West
  • Paris
  • Dick’s R&B Top 100
  • Liberty & Freedom Map
  • Bank Credit & Money
  • Your Survival Guy’s Super States
  • NNT & Cholesterol
  • Your Health
  • Ron Paul
  • US Treasury Yield Curve: My Favorite Investor Tool
  • Anti-Gun Control
  • Anti-Digital Currency
  • World Gold Mine Production

Dividend Growth is Key

June 21, 2016 By E.J. Smith - Your Survival Guy

BlackRock’s Global Chief Investment Strategist Richard Turnill on the importance of dividend growth.

This week’s chart shows how U.S. dividend stocks have outperformed the S&P 500 over the past year, a trend we have also seen in other regions, as ultralow bond yields have intensified the hunt for income.

Year-to-date flows into dividend-focused exchange traded products (ETPs) have reached $7.4 billion, more than seven times the 2015 total, according to our data.

So what’s next for dividend stocks? We don’t see strong demand for dividend stocks dissipating anytime due to low interest rates, attractive dividend yields and aging populations. But we would now look specifically to dividend growers to drive returns.

The insatiable search for yield has driven many income assets to high valuations, but dividend growers are still attractively priced at 13.4 times forward earnings, our analysis shows. These quality stocks with a consistently growing dividend stream also tend to be more resilient in bumpy and down markets. They have outperformed the broader market during high-volatility periods, according to BlackRock research. We see higher volatility ahead, given the risk of a British exit from the European Union, elevated U.S. valuations and the potential for a Federal Reserve rate increase in 2016.

High-dividend stocks have outperformed dividend growers in the past year, but our analysis shows they historically have been vulnerable to higher rates. Dividend growers, by contrast, tend to perform well in a gradually rising rate environment. They tend to have more rate-resilient characteristics, such as strong balance sheets, and benefit from a growing economy.

We like companies with lower pay-out ratios and strong cash flows, at a time when pay-out ratios are historically high. We see attractive dividend-growth opportunities in global pharmaceuticals, international telecom, emerging market (EM) infrastructure and selected information technology companies.

Related Posts

  • Dividend Religion, Hallelujah!
  • Greetings from Key West
  • Greetings from Key West
  • Author
  • Recent Posts
E.J. Smith - Your Survival Guy
E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998.

E.J. has trained at Sig Sauer Academy in Epping, NH, NH, where he completed course-work in Practical and Defensive Handgun, Conceal Carry Pistol, Shotguns, Precision Scope Rifle and Kidnapping Prevention.

E.J. plays a Yamaha Recording Custom drum set with Zilldjian cymbals. His first drum set was a 5-piece Slingerland with Zildjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris.

Please get in touch with E.J. at ejsmith@yoursurvivalguy.com

Click here to sign up for my free monthly Survive & Thrive letter.
Latest posts by E.J. Smith - Your Survival Guy (see all)
  • My Nephew Graduates, and I’m Larry the Cable Guy - June 5, 2023
  • Rome, Paris, U.S.A.: Global Crisis in Confidence - June 2, 2023
  • Your Survival Guy’s Best Insider’s Guide to Rome - June 2, 2023

Dick Young’s Must Reads

  • What’s John Kerry Doing in Mexico?
  • Thanks to America’s Worst President
  • What to Do about China?
  • Who Will Pay the Price for LEDs?
  • ACTRESS: “Liberal Politicians Are Ruining Cities”
  • To Me There Isn’t a Better Way to Live
  • The Breakfast of Champions
  • Conflict Between Democratic Sovereignty and Transnational Progressivism (Globalism)
  • Are You Prepared to Run Out of Water?
  • Democracy & Diversity: Not In the Constitution

Disclosure

RSS Youngresearch.com

  • Rome, Paris, U.S.A.: Global Crisis in Confidence
  • June Is Retirement Compounders Month
  • What Is a Fiduciary Duty? Are You Working with a Fiduciary?
  • FOOD CRISIS? Ukraine Says Russia Is Blocking Grain Exports
  • Delivery Robots Coming to More Cities with Uber Eats
  • Western Sanctions on Russia Have Strengthened Its Ties to India, China
  • Birth Rates in France Worst Since Post-WWII Era
  • A Cashless Society Is A Debacle for Americans
  • Democracy: The Most Dangerous and Insidious Effect of Majority Rule.
  • What’s the Alternative to China for Manufacturers?

RSS Yoursurvivalguy.com

  • My Nephew Graduates, and I’m Larry the Cable Guy
  • California Is Driving These Wealthy Businesses Out of the State
  • Rome, Paris, U.S.A.: Global Crisis in Confidence
  • Your Survival Guy’s Best Insider’s Guide to Rome
  • What Is a Fiduciary Duty? Are You Working with a Fiduciary?
  • Survive and Thrive June 2023: Your Survival Guy in Rome 30-Years A.B. (After Babson)
  • Birth Rates in France Worst Since Post-WWII Era
  • Your Survival Guy Felt Like a U.N. Worker in Rome
  • Social Security: Declining Italy Needs a Bambino Boom
  • ATTACK ON THE IVAN KHURS: Unmanned Vessels Changing Naval Warfare

The Nickel Pickle from EVs

My Nephew Graduates, and I’m Larry the Cable Guy

Why Is the Media So Terrified of Robert F. Kennedy Jr.’s Ideas?

Sen. Rand Paul Says It’s Time to Fight Back Against the Woke Left

Should McCarthy Have Forced the Government’s Hand?

Will America Succumb to Intimidation from “The Group?”

Copyright © 2023 | Terms & Conditions | About Us | Dick Young | Archives