Why Dividend Growth Is So Important

Author: USGI
Date Posted: October 12, 2015 Read time: 2 min

In a recent interview with SmallCapPower, Frank Holmes discusses a number of portfolio strategies for global investors, one of which deals with dividend growth.

In a recent interview with SmallCapPower, Frank Holmes discusses a number of portfolio strategies for global investors, one of which deals with dividend growth. Frank says that according to his team’s analysis and quant models, three-year growth in dividend income has been a significant factor in stocks outperforming. He notes that this year, the biggest growth in the S&P 500 Index has been seen in the airline industry.

Frank also makes a case for gold in the interview, discusses the transformation in China and ends with a few companies he has his eye on.

 

Click here to watch the replay!

 

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Fund portfolios are actively managed, and holdings may change daily. Holdings are reported as of the most recent quarter-end. The following securities mentioned in the interview were held by one or more of U.S. Global Investors Funds as of 06/30/2015: Barrick Gold Corp, Facebook Inc., Freeport-McMoRan Inc., Glencore PLC, IOU Financial Inc., Newmont Mining Corp.

The S&P 500 Stock Index is a widely recognized capitalization-weighted index of 500 common stock prices in U.S. companies.

Diversification does not protect an investor from market risks and does not assure a profit.

There is no guarantee that the issuers of any securities will declare dividends in the future or that, if declared, will remain at current levels or increase over time.

The Purchasing Manager’s Index is an indicator of the economic health of the manufacturing sector. The PMI index is based on five major indicators: new orders, inventory levels, production, supplier deliveries and the employment environment.