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Amid Inflation and Volatility, Dividend-Growth Investing Holds Appeal

Dividend-growth investing targets companies that have increased their payouts over time. In contrast to a high-yield equity-income strategy, it’s less about maximizing current income than identifying companies with improving prospects. This approach can help income-oriented investors preserve purchasing power, and for those seeking core equity exposure with a pure total return focus, it can lead to companies with pricing power that tend to deliver a smoother ride that the broad market. Given the current market environment, it's an opportune time to examine the Morningstar US Dividend Growth Index and compare its behavior to the broad market and its high-yield segment.

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What's Inside

  • What does the index's behavior tell us about dividend growth generally?
  • How does dividend growth differ from traditional equity-income investing on the one hand and the broad equity market on the other?
  • Where in today's market is the index identifying rising payouts?

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