From Nuveen Investments

Chart Talk

The What, Why and How of Dividend Growth Investing

High-Quality Companies Withstood Market Drawdowns

During drawdowns of 7% or greater, high-quality companies have typically outperformed the S&P 500 Index over the last 10 years.

The Case for Diversification Across the Dividend Yield Spectrum

No single dividend yield category leads in all markets, and the top performers change over time. Investing broadly across a wide range of yields may help reduce risk in an overall portfolio.

The Benefit of Dividend Growers in Volatile Markets

With the likelihood of rising market volatility growing, investors could benefit with dividend growers.

Concerned About the Richly Valued Market?

Even when valuations are above their long-term average, dividend growers have provided a strong risk-return profile.

Past History of Dividend Payment Doesn’t Always Tell the Whole Story

Focusing on company fundamentals may help identify dividend cutters, as well as opportunities for dividend growth.

Dividend Growers have Outperformed in Past Periods of Rising Rates

Fed rate hikes aren't necessarily bad for equities. In fact, dividend growers have historically outperformed after rates rise.

Dividend Growers Outperform 100% of the 10-Year Rolling Time Periods

In both up and down markets, dividend growers have outperformed 100% of the 10-year rolling time periods.

A Sole Focus on High Dividend Yield Reduces an Investor's Opportunity Set

A low yield environment has led many investors to narrowly focus on high dividend yielders, but this can greatly reduce potential investment options to just 25% of the S&P 500 Index.

Dividend Growth Companies vs. Dividend Yielders

The recent trend has been to chase dividend yield. However, now may be the opportune time to look at the benefit of dividend growers compared to dividend yielders.

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Distorted Valuations Create Opportunities and Risks Alike

Looking for reasonably valued companies when market valuations are above their long-term average? Higher quality companies are currently trading at discount and exhibit low volatility.

Will the Next 3 Years Look the Same?

History shows since 1926 that 91% of the time there are more than just 1 negative quarter over a 3-year time frame. Therefore, a focus on the downside may help preserve capital when the markets do turn negative.

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