67 WALL STREET, New York - May 12, 2014 - The Wall Street Transcript has just published its Investing Strategies Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Cyclical Sectors, Exposure to Emerging Markets - Value Oriented Strategy - High-Quality Companies - Dividend-Paying Stocks - Capital Appreciation - Global Macro Trends - Investment Risk Management Strategies - Long-Term Investing
Companies include: Vodafone Group plc (VOD), Verizon Communications Inc. (VZ) and many others.
In the following excerpt from the Investing Strategies Report, an expert analyst discusses the outlook for the sector for investors:
TWST: Please begin with a snapshot of Global Dividend Payers and a brief history of the strategy.
Ms. Henderson: Global Dividend Payers is an SMA - separately managed account - strategy that we've developed for the wealth market or specifically, for individual investors. It is a portfolio where we hold 50 to 60 names, U.S. and international stocks, and it was designed to help people with their income needs.
This portfolio looks at mainly global multinationals that pay above-market dividend yields, but also gives you the opportunity to participate in equity appreciation and growth in income stream. So it helps fill the need for income in the low-income-rate environment, but it doesn't lock you out of the possibility of appreciation as the economy grows, as companies grow.
TWST: Who is best served by this strategy?
Ms. Henderson: I think many clients can benefit from it. There's obviously a group of people who really have a need for income, potentially people who've undersaved or who have an increase in their spending needs. It works well for people that potentially like a little less volatility in their investments than say an aggressive growth strategy. I think it is more geared toward the wealth client than the wealth-accumulating client.
So if I were working in a trust with maybe some young beneficiaries, I would pair it with more growth-oriented strategies as a complement, because you're making a trade-off, you're getting more income and a little less growth.
TWST: And why is the global space so well-suited to this product?
Ms. Henderson: Part of it is there's a different culture, predominantly in Europe, where Europeans seem to expect some rent on their capital; whereas in our market certain sectors don't pay dividends, or we don't expect dividends. We're more comfortable with emerging growth companies and embrace a more entrepreneurial culture.
In Europe you see dividend payers in most sectors. We've recently done a study in the health care sector, comparing European health care companies versus U.S.-domiciled health care companies...
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.