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Opinion: 9 secrets of dividend investing, from a couple of stock pros who beat the market

johnNjohnN
in Fund Discussions
https://www.marketwatch.com/story/9-secrets-of-dividend-investing-from-a-couple-of-stock-pros-who-beat-the-market-2020-02-19

Opinion: 9 secrets of dividend investing, from a couple of stock pros who beat the market

Many income-focused investors dwell on dividend yield and buy largely on that basis. More income is better, right?

Not so, say the two dividend-minded mutual-fund managers who run the outperforming Guinness Atkinson Dividend Builder Fund GAINX, +0.47% . Matthew Page and Ian Mortimer use a much more nuanced approach to get high-achieving results. Over the past three years, they have beaten both their Morningstar World Large-Stock category and the MSCI ACWI Index by 1.9 and 1.4 percentage points, respectively, on an annualized basis.

Comments

  • joe74
    edited February 2020
    “ Their system starts by identifying companies with the characteristics that exemplify long-term outperformance. Then they fish in this pond, since these businesses are likely to continue doing well. ”

    “secrets” include:
    Buy cheap stocks, look global, hold long term, concentrated bets, strong balance sheets, get a degree in physics

    Two-part rationale for avoiding high dividend yield: they can’t raise it much in the future, and they’re probably masking weakness.

    Proof of their secret formula: beat the index for three years
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