WisdomTree Global High Dividend Fund

DEW

Valor de mercado US$ 160 mi

By investing in companies that generate durable free cash flow, investors can help dampen volatility, support total return and deliver sustainable income over the long term. Historically, dividends have been a meaningful contributor to equity returns, accounting for nearly 40% of the S&P 500's total return. Dividends can do more than provide a stream of income; investing in companies that generate free cash flow may help reduce volatility, drive total return and deliver sustainable income over the long term.

Global dividends hit a record high in 2024, with $606.1 billion paid in Q2 alone, as tech giants like Meta and Alibaba entered the dividend-paying market. Equity yields remain low compared to bonds, with the FTSE All-World index yielding 1.86% in September 2024, while the FTSE World Government Bond index yield to maturity stood at 3.03%. Dividend-focused strategies can enhance income potential in equity portfolios by prioritising high-dividend-paying sectors and reducing risks of dividend cuts.

The last 12 months have been difficult for equity income investors. The top 20% of dividend-paying stocks in the S&P 500 Index have returned 13.5% in the 12 months through March.

Dividend stocks, including REITs and utilities, have underperformed in recent years. Rising interest rates and increasing costs of capital have contributed to the underperformance. The beginnings of a strong dividend stock rally may have just begun on the back of some very good news.