As Rates Rise and Economies Expand, Use Dividend Growth for a Smooth Ride Upward

As global dividend payouts expand, one dividend strategist says that investors should consider targeting dividend growth, rather than dividend yield.

Christian Magoon, CEO of Amplify ETFs, says that as U.S. monetary tightens and other central banks begin to taper their purchases of fixed income products, dividend growth strategies should outperform high-dividend yield strategies.

“There are more interest rate increases on the horizon, and it’s time to alert many income investors not to only look at duration on the fixed income side, but also at their exposure to high dividend strategies versus dividend growth strategies,” says Magoon.
Source: FA Magazine

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