To Reveal Value, Start with Dividends
Value investing is back. Watch the first video in our Focus Points series to learn how we go about finding today’s attractive value discounts, and why dividends are the key. With Global Chief Investment Officer, Jeremy Schwartz.
Hi, I’m Jeremy Schwartz, Global Chief Investment Officer at WisdomTree. Growth stocks had an incredible run for well over a decade. But not in 2022. 2022 was the return to value investing with a particular focus on dividend paying stocks. Now will this just be a one year trade for value and growth stocks are to come back to dominate?
Not in our view. We believe investors are to continue to focus on dividends, not over the coming year, but over the coming decade. This can be the decade for dividends. Now WisdomTree was founded back in 2006 on the basic idea that dividend weighting portfolios can help improve valuations over traditional market cap weighted portfolios. That was what mattered in 2022 and what we think is going to matter in the decade ahead. Not only do we screen for higher valuations and strong dividend rates, but also the ability to grow dividends over time by looking for companies with strong balance sheets.
This was WisdomTree’s original idea, and it’s part of how we built our value portfolios for the WisdomTree U.S. LargeCap Dividend Fund, DLN. The WisdomTree U.S. MidCap Dividend Fund, DON. The WisdomTree U.S. Small Cap Dividend Fund, DES and the WisdomTree U.S. High Dividend Fund, DHS.
In times of volatility like we’ve been experiencing now, we think dividend-based investing will be rewarded.
To learn more visit WisdomTree.com/Value or speak to a WisdomTree representative today.
