The best opportunities for the dividend investor

ON SPECIALIST MARKETS

M&G's Stuart Rhodes reveals his strategy for long term dividend growth.

Equity income strategies focusing on dividend yield are playing a dangerous game. A high yield is not always a signal of value but often a sign of trouble, as many investors discovered during the recent financial crisis. Picking stocks among firms under pressure is a strategy riddled with pitfalls and returns from such a strategy can be extremely volatile. Investors need to look beyond the yield. Dividend investing is about dividend growth, not dividend yield. Our core belief is long-term dividend growth can only be achieved if a company grows in a disciplined manner. In fact, w...