Kelly explained: “We are looking for dividend-paying stocks that have a dividend yield of more than 10 years.” [treasury] Rates in the US and Canada. To have a broad enough set of names to play with the customization part of the framework, we look at the dividend yield of companies that have a consistency over time and we’ll look at the dividend yield, payout ratio, and a combination of things like dividends. Growth. ,
This process picks up a wide range of companies and sectors, including some REITs, utilities, financial and technical names. Kelly said the funds may be suitable for investors who are at the end of their careers with retirement. However, he also believes that, as populations age, the pursuit of yield will eventually result in more widespread interest.
“If you look at the fixed income markets, there has been a steady decline in yields over the past 30 years,” he said. “The spread on more speculative grade fixed income properties is harder than ever, and so participants are looking elsewhere for the yield, and I think there will be a thirst for yield wherever investors can find it. This will happen in the long run. Will boost returns, and dividend-paying stocks tend to perform slightly better than non-dividend-paying stocks over time.”
While the pandemic didn’t change the process behind actively managed funds – “there’s no need to squabble and fight with the markets”, Kelly said – the products held up despite the volatility. The UDIV and CDIV both outperformed their indices and fell less than their benchmarks when the market hit its lows in January.
“Wealth hit on all four cylinders,” he said. “And that’s kind of what we expected. The dividend yield, and certainly the quality metrics we used, certainly paid off in January.”