23 years of investment experience, serves as a Portfolio Manager, Managing Director, and Executive Chairman of the Advisory Research Partner Group. Prior to joining the firm in 2005, Matthew worked in the assurance and business advisory group at PricewaterhouseCoopers LLP. Matthew holds a BS in accounting and business administration from the University of Kansas and an MBA from the Kelley School of Business at Indiana University. Matthew is a Chartered Financial Analyst (CFA®) charterholder and has passed the Uniform CPA Examination.
by Justin Lamb on April 08, 2024
MARCH 2024 - Select Dividend
If there is one thing markets dislike, it is uncertainty
There has been growing certainty that 1) inflation is easing and 2) as a result, the Fed will cut rates somewhat aggressively later in 2024. Volatility markets have reflected this consensus, with the VIX closing 2023 at post-pandemic low of 12.5% and the S&P 500 generating a ~23% total return since its 4th quarter low on October 27, 2023.
However, recent consumer price inflation prints have indicated that inflation is stickier than expected, putting the prospect of aggressive rate cuts in doubt. If inflation continues to be sticky and the Fed defers on rate cuts, volatility will likely rise.
Historically, stocks with strong dividend growth outperformed during periods of increasing volatility. The Advisory Research Global Select Dividend strategy has a current dividend yield of 3.3% (as of 12/31/23) with 22% dividend growth over the last 3 years.
Past performance does not guarantee future results. Investing in securities involves risk, including the possibility of the loss of principal.
Please see Advisory Research’s Form ADV Part 2A, which is available upon request, for more information.
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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.
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Benchmark Definitions:
The S&P 500® index consists of the 500 largest U.S. corporations by market capitalization with at least 50% of shares outstanding available for trading. Stocks are chosen for market size, liquidity and industry group representation. The index is weighted by market value with each stock’s weight in the index proportionate to its market value.
The S&P 500® Dividend Aristocrats® index measures the performance of S&P 500 companies that have increased dividends every year for the last 25 consecutive years. The index treats each constituent as a distinct investment opportunity without regard to its size by equally weighting each company.
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. The strategy’s portfolio managers believe this benchmark accurately reflects the strategy’s investable universe. The ETF returns presented are total returns, representing changes to the NAV and accounting for distributions from the fund. NAV
