As the economy stabilizes and the Fed tightens the monetary policy, bond yields have started trending upwards. Increasing yields adversely impact bond prices, with longer-term bonds impacted the most. We believe that investors in considerably long capital preservation investments should consider equity strategies that focus on high-quality high-dividend stocks.
Read more: Investment Commentary (PDF)
High yield dividend strategies suffered in the bear market trauma of 2008 but their combination of high current yield with potential for modest dividend growth and long-term capital appreciation make dividend strategies an attractive alternative to long maturity fixed income investments. For investors nearing a deaccumulation or withdrawal phase in their investment objective, high dividend yield strategies have provided growing income and capital preservation.
Read more: Portfolio Manager Insights. (PDF)
The EquityCompass indices measure the performance of stocks with extreme investment characteristics. Monitoring for extreme conditions is insightful for understanding performance trends and outlier market conditions. The indices represent 50 stocks from the EquityCompass universe of over 3,000 stocks that meet the specified investment characteristic: either mega (i.e., greatest) or micro (i.e., least).
Click to view: EquityCompass Performance Monitor - March 2010 (PDF)
The Update & Review is our monthly publication that provides commentary, analysis, and investment insights for stock selection and portfolio management.
Recent Issues
- March 2010 (PDF)
- February 2010 (PDF)
- January 2010 (PDF)
