High dividends an indicator ofoutperformance

Companies paying high dividends offer investors good opportunities as many investors are busy chasing growth. Current markets conditions suggest that income will be more important in driving markets

Having managed income and income growth portfolios for nearly 20 years, I think it is very important to look at the past before analysing the future. Investors have profited for a very long time through investing in 'income growth' funds and the statistics suggest that it was only in the late 1990s that this style under-performed to a significant degree. Why should this be? I believe there are four key reasons as to why this out-performance is the norm. First, dividends are important to many investment decisions. Another key factor is that targeting income forces fund managers to buy l...