Conditions of uncertainty
Dividends have withstood market volatility.
Published June 22 2022
Question: What makes companies with high dividend stocks a good choice regardless of the market environment?
Dan Peris: For those investors that are looking for income, it's an obvious source of income in a period, a multidecade period, of a very low interest rates. The stock market can be approached and used as a platform for investors to generate a high and rising income stream from high quality business assets which just happen to be publicly traded. That need for income from a wide variety of investors, not just baby boomers or retirees or those looking forward to retirement, can turn to dividends as a good source of steady return and cash flow to support their lifestyles.
Dan Peris: As in all matters, decision making under conditions of uncertainty, that's a finance term for how we choose stocks, the decisions we make, the styles that we choose to invest in, managers and so forth, that accompanies all the major decisions that we encounter in our life and investment decisions do have a degree of uncertainty associated with them. And so, you want to do your due diligence or have your advisor or your portfolio manager doing that due diligence as to which type of investment product and which managers can achieve the investment goals that you seek.
Dan Peris: In this case, we tend to focus on delivering a high and rising income stream from high quality business assets for clients who want that. But an appropriate amount of due diligence, as in all other matters, is always suggested.