There is very little information on the index available currently other than it is market cap weighted and
focused on dividend income.
Many dividend investors point to the peace of mind created
by focusing on dividend stocks and receiving predictable dividend payments.
It turns out a dependable income stream isn't the only reason to
focus on dividends when you get close to retirement.
If you're a long - term value investor
who focuses on dividend growth this could be an interesting time to lock in great values with attractive yields.
However, putting maximum weight and
focus on dividends does not simultaneously mean at the exclusion of other important fundamental metrics.
During periods of uncertainty and high volatility people tend to
focus on dividends because they're seen as a reliable source of cash flow when in fact, they are not guaranteed.
Since we are pursuing a strategy of long - term investing independent of short - term fluctuations in share price, we are
primarily focusing on dividend yield.
The debt is quite heavy and investors didn't like it when management shifted
from focusing on dividend growth to paying down debt.
For taxable investors who have above - average incomes, it may not make sense to
focus on dividends at all.
I am asking that the
reader focus on the dividends primarily in order for me to illustrate that waiting for fair value can produce more total dividend income in the long run.
Capital allocation can be in and of itself a long discussion, so I am going to
focus on the dividend aspect, one tool in the tool box of capital allocation.
Nevertheless, the fund has clearly exhibited some defensive qualities in a challenged asset class,
by focusing on dividend - paying equities and fixed - income securities.
The quantitative models
focus on dividend yield, historical volatility of the stocks and the company's dividend policy.
Although both of these
funds focus on dividends, they take a different approach that has led to disparities in performance and income over time.