Dizzy Over Dividends – Infographic by AllianceBernstein
US companies that offer high dividends are very popular among equity investors today. Shares of these companies are trading near record high valuations, as the very low interest-rate environment prompts investors to seek stocks that act like bonds. The market’s composition—illustrated in our infographic—demonstrates the risks of investing in the highest-yielding passive equity funds. In today’s market, we believe a selective, active approach, focused on valuation, growth prospects and company fundamentals, is essential in the hunt for dividends.
Paul J. Isaac's Arbiter Partners returned -19.3% in the third quarter of 2021, according to a copy of the hedge fund's quarterly investor correspondence, which ValueWalk has been able to review. Following this performance, the fund's return sits at -1.6% for the year to the end of September. In comparison, the S&P 500 returned 15.9%, Read More
The views expressed herein do not constitute research, investment advice or trade recommendations and do not necessarily represent the views of all AB portfolio-management teams.