Three Objections Have Been Leveled at Equity-Income Investing:
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That better returns can be harnessed elsewhere in markets -
That an income-focused approach entails missing out on growth opportunities -
That share buybacks provide a viable alternative to dividend payments by companies
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- Given our contention that all three objections can be overcome, we are delighted to have supported new research from the University of North Carolina, which looks at the efficacy of equity-income investing. Specifically, it addressed the three objections above by asking:
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- Do dividends drive returns?
- Does pursuing an income-focused approach necessitate a sacrificing of growth?
- Are dividends and buybacks equally suitable ways to return income to investors?
Meet the Global Equity Income Team
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Jon Bell
Portfolio manager, global equity income
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Robert Hay
Portfolio manager, global equity income
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Paul Flood
Head of mixed assets investment
Your capital may be at risk. The value of investments and the income from them can fall as well as rise and investors may not get back the original amount invested.