QDIV: A Quality Dividend Strategy For A Late Cycle Environment

Nov. 15, 2022 3:35 AM ETQDIV
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Summary

  • An increasingly popular approach to investing in asset classes is via passive portfolios with rules to tilt toward particular characteristics, known as factor investing.
  • Factors like quality and dividend yield can be useful in explaining portfolio risk and return, and when used as a portfolio strategy can potentially provide for superior risk adjusted returns than the market.
  • In this report, we explore the investment thesis of quality high dividends that focuses on companies exhibiting a blend of both quality and high dividend yield factors.

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We Are

An increasingly popular approach to investing in asset classes is via passive portfolios with rules to tilt toward particular characteristics, known as factor investing.

Factors like quality and dividend yield can be useful in explaining portfolio risk

Quality high dividend has exhibited materially lower levels of debt

Quality high dividend has outperformed S&P 500 and US bonds

Quality high dividend screens result in differing sector weights

Quality high dividend offers more value characteristics

Quality high dividend exhibits more value characteristics

Understanding the business cycle

Quality high dividend has outperformed unprofitable tech

Recent drawdowns: S&P 500 and quality high dividend

Quality high dividend has provided an attractive yield pickup

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