Commentary

Balancing Income and Growth

by Adam Steffanus, CFA on November 06, 2026

 

Dividend investing beyond current yield.

We think dividend investing is more than seeking the highest current yield. Our Select Dividend strategies combine established dividend payers with companies that have the potential to increase their dividends over time, seeking to balance income today with opportunities for long-term capital appreciation.

A disciplined approach to dividend investing

By investing across the style spectrum, our Select Dividend strategies seek to combine established income-producing businesses with companies offering opportunities for dividend growth and capital appreciation. We emphasize cash flow generation, disciplined capital allocation, and management teams positioned to support sustainable dividends over time.

Global Select Dividend | 9/30/2026
DIVIDEND YIELD
3.0%
Forward
DIVIDEND GROWTH
16.6%
3-Year Realized CAGR

Portfolio characteristics do not reflect the deduction of fees or expenses.   Jump to strategy performance

Our portfolios balance income and growth

Global Select Dividend has a more balanced allocation across Growth, Core, and Value stocks than the iShares MSCI ACWI ETF, with a greater exposure to Core and Value companies than the benchmark.

EQUITY STYLE ALLOCATIONS
Global Select
Dividend
24%
40%
36%
iShares MSCI
ACWI ETF
46%
37%
18%
Growth Core Value

Source: Bloomberg, UBS HOLT as of 10/15/26. Style classifications are based on a proprietary score measuring relative growth and value characteristics, using the largest 1,000 U.S. securities assigned to Growth, Core, and Value terciles.

Dividend characteristics vary across equity styles

Within our U.S. equity style analysis, Growth stocks exhibit lower average current yields but substantially higher historical dividend growth than Core and Value stocks.

EQUITY STYLE FORWARD DIVIDEND YIELD DIVIDEND GROWTH
(3-Years, Annualized)
Growth 0.6% 31.2%
Core 1.4% 7.0%
Value 2.7% 4.1%

Source: Bloomberg, UBS HOLT as of 10/15/26. Statistics are market-cap-weighted averages of the largest 1,000 U.S. securities, categorized into Growth, Core, and Value terciles using a proprietary score.

Style balance is reflected in our largest holdings

Our largest holdings illustrate how the Select Dividend strategies combine companies offering higher current income with businesses exhibiting faster historical dividend growth. Both portfolios maintain exposure across Growth, Core, and Value investment styles.

Global Select Dividend
Forward Dividend Yield: 3.0% | 3Y Realized Dividend Growth: 16.6%
Ticker Name Weight (%) Div Yield (%) Div Growth (3Y, %) Style
992 Lenovo Group 6.0 2.5 3.6 ● Value
TSM Taiwan Semiconductor 5.6 1.3 28.7 ● Growth
8766 Tokio Marine Holdings 5.4 3.1 28.6 ● Core
RBI Raiffeisen Bank International 4.5 3.8 26.0 ● Value
GOOGL Alphabet, Inc. 4.3 0.2 4.9* ● Growth
META Meta Platforms, Inc. 4.0 0.3 2.5* ● Growth
KDP Keurig Dr Pepper, Inc. 4.0 2.8 4.1 ● Core
GFNORTEO Grupo Financiero Banorte 3.8 7.3 18.8 ● Core
BATS British American Tobacco PLC 3.6 5.8 2.3 ● Value
PM Philip Morris International 3.6 3.2 5.6 ● Growth
Top 10 Holdings by Style ● Value 3  |  ● Core 3  |  ● Growth 4
U.S. Select Dividend
Forward Dividend Yield: 2.0% | 3Y Realized Dividend Growth: 14.2%
Ticker Name Weight (%) Div Yield (%) Div Growth (3Y, %) Style
GOOGL Alphabet, Inc. 5.9 0.2 4.9* ● Growth
TSM Taiwan Semiconductor 5.5 1.3 28.7 ● Growth
AVGO Broadcom, Inc. 5.2 0.9 12.2 ● Core
LRCX Lam Research Corp. 4.9 0.5 15.7 ● Growth
MSFT Microsoft Corp. 4.8 0.8 10.2 ● Core
DAC Danaos Corp. 4.6 2.8 4.1 ● Value
ABBV AbbVie, Inc. 4.1 2.5 5.3 ● Core
META Meta Platforms, Inc. 4.0 0.3 2.5* ● Growth
KDP Keurig Dr Pepper, Inc. 3.7 2.8 4.1 ● Core
STLD Steel Dynamics, Inc. 3.6 0.9 9.0 ● Value
Top 10 Holdings by Style ● Value 2  |  ● Core 4  |  ● Growth 4

*2-year annualized dividend growth rate. Source: Bloomberg, UBS HOLT as of 10/15/26. Style classifications are based on a proprietary score measuring relative growth and value characteristics assigned to Growth, Core, and Value terciles. Periods over one year shown annualized. Strategy level dividend characteristics reflect representative portfolios as of 9/30/2026. Portfolio characteristics do not reflect the deduction of fees or expenses.

Strategy Performance (%)

Global Select Dividend Performance

Return (%) YTD 1 Year 3 Years 5 Years 10 Years Inception1
GSD (gross) 21.8 26.6 26.8 15.6 13.0 11.5
GSD (net2) 21.2 25.7 25.9 14.8 12.2 10.7
GSD (wrap3) 19.4 23.2 23.4 12.5 10.0 8.4
iShares MSCI ACWI ETF 12.9 16.6 21.8 11.6 12.5 10.2

U.S. Select Dividend Performance

Return (%) YTD 1 Year 3 Years 5 Years 10 Years Inception1
USSD (gross) 13.8 18.3 24.2 16.0 14.3 14.2
USSD (net2) 13.2 17.4 23.3 15.2 13.4 13.3
USSD (wrap3) 11.5 15.1 20.9 12.9 11.2 11.1
iShares Russell 1000 ETF 12.2 15.0 22.4 12.9 14.9 13.9

1Inception: 12/31/2010 for the Select Dividend strategies. 2Net of a model fee of 0.75%. 3Wrap returns are net of a model fee of 2.80%. Data is presented in USD. Performance results are preliminary as of 9/30/2026. Information is shown as supplemental information only and complements the fully compliant presentation linked here.

Past performance is no guarantee of future results. Periods over one year shown annualized. Investing in securities involves risk, including the possibility of the loss of principal.

 

IMPORTANT INFORMATION

Characteristic Definitions

  •  Forward Dividend Yield (Portfolio): The portfolio's estimated annual dividend income over the next 12 months, expressed as a percentage of its current value. The calculation combines the forward dividend yields of the underlying holdings based on their portfolio weights. Actual dividends may differ from these estimates.

  •  3-Year Realized Dividend Growth (Portfolio): The annualized growth in the portfolio's estimated dividend income over the past three years. The calculation uses historical portfolio returns and trailing four-quarter average indicated dividend yields to estimate dividend income at the beginning and end of the period .

  •  Dividend Yield (Holdings): A company's annual dividend payments over the trailing 12 months, expressed as a percentage of its share price.

  •  Dividend Growth (3Y) (Holdings): The annualized percentage change in a company's dividends per share over the past three years, calculated using historical dividend payments.

Please see Advisory Research’s Form ADV Part 2A, which is available upon request, for more information. Advisory Research is providing this material for informational purposes only. The information provided is not intended to recommend any company or investment described herein, and is not an offer or sale of any security or investment product or investment advice. Before making any investment decision, you should seek expert, professional advice and obtain information regarding the legal, fiscal, regulatory and foreign currency requirements for any investment according to the laws of your home country or place of residence.

Certain information contained herein constitutes forward looking statements, projections and statements of opinion (including statements of financial market trends). Such information can typically be identified by the use of terminology such as “may”, “will”, “should”, “expect”, “anticipate”, “project”, “estimate”, “intend”, “continue” or “believe” or comparable terminology. All projections, opinions and forward looking statements are based on information available to Advisory Research as of the date of this presentation, and Advisory Research’s current views and opinions, all of which are subject to change without notice. Due to various risks and uncertainties, actual events or results may differ materially from those reflected or contemplated in forward looking statements. Additionally, information and views presented herein may be drawn from third-party or public sources which are believed, but not guaranteed, to be reliable and which have not been verified for accuracy or completeness.

Advisory Research’s strategies are actively managed and not intended to replicate the performance of any cited index: the performance and volatility of Advisory Research’s investment strategies may differ materially from the performance and volatility of a cited index, and their holdings will differ significantly from the securities that comprise the index. You cannot invest directly in an index, which does not take into account trading commissions and costs.

Global Select Dividend benchmark comparison is presented using the iShares MSCI ACWI ETF as Advisory Research considers this ETF to parallel both associated risk and the investment style presented by the strategy. The iShares MSCI ACWI ETF seeks to track the investment results of an index composed of large and mid-capitalization developed and emerging market equities. 

U.S. Select Dividend benchmark comparison is presented using the iShares Russell 1000 and Russell 1000 Value ETFs as Advisory Research considers these ETFs to parallel both associated risk and the investment style presented by the strategy. The iShares Russell 1000 ETF seeks to track the investment results of an index composed of large- and mid-capitalization U.S. equities. The iShares Russell 1000 Value ETF seeks to track the investment results of an index composed of large- and mid-capitalization U.S. equities that exhibit value characteristics.

Advisory Research is an investment adviser in Chicago, IL. Advisory Research is registered with the Securities and Exchange Commission (SEC). Registration of an investment adviser does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the Commission. Advisory Research only transacts business in states in which it is properly registered or is excluded or exempted from registration. A copy of Advisory Research’s current written disclosure brochure filed with the SEC which discusses among other things, Advisory Research’s business practices, services and fees, is available through the SEC’s website at: www.adviserinfo.sec.gov
Strategies: Select Dividend

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