Surveying the Landscape for Dividend-Growth Investors May 7, 2020 Investing Print https://www.adviserinvestments.com/wp-content/uploads/landscape-for-dividend-growth-investors.mp3 As more companies are cutting their dividendsA cash payment to investors who own stock in the company. in this uncertain market, what role do dividend-growth stocksA financial instrument giving the holder a proportion of the ownership and earnings of a company. play in your portfolio? Vice President and DividendA cash payment to investors who own stock in the company. Income Strategy Portfolio Manager Charlie Toole discussed the dividendA cash payment to investors who own stock in the company. landscape for investors in our recent quarterly webinar*: Separating Pandemic Noise From Investment Signals. Please enjoy the excerpt below and click here for the full webinar replay to hear more. * * * * * Charlie Toole: As the pandemic and deficits are on people’s minds and certainly in the headlines, I think that dividends and their sustainability or whether or not they’ll be cut or suspended is also in the headlines. And we are going to see several dividends be cut or suspended by companies in the coming months. We’re in a recession … The economy has just been turned off. In fact, we’ve already seen several dividend cuts or suspensions from companies that have been hardest hit by the virus, specifically the travel and leisure industry and the energy sector. But I expect more cuts to come across from other sectors and industries. One of the things that we try to do when we’re avoiding (or trying to avoid) companies that are going to cut their dividends is research their financial strength. We consider, or we try to analyze, their balance sheet and determine if they have a “battleship balance sheet.” If they’re able to withstand a slowing economy or, in this case, an economy that’s turned off. We also analyze the business model of the company. Do we think they can continue to pay the dividend in an economic slowdown? And how has the company handled the dividend in past downturns? Did they continue to pay or grow their dividend or did they cut the dividend? Not all companies are the same. There will be winners and losers, and we look for the winners, the companies that will consistently grow their dividends while others are cutting and suspending in a downturn. In fact, we’ve had three stockA financial instrument giving the holder a proportion of the ownership and earnings of a company. holdings raise their dividends over the last two weeks. So we’re glad that we’re able to find these strong companies that can continue to grow and pay their dividends through this tough time. * * * * * Click here for a replay of Separating Pandemic Noise From Investment Signals. Read our special report, Dividend-Growth Stocks, to learn more about our approach to selecting dividend-paying stocks for a portfolio. You can also hear more from Charlie and his team in our recent podcast episode, Earnings Reports From a Pandemic: Innovation, Adaptation and Taking Shelter. Please contact us at (800) 492-6868 to learn more about our comprehensive wealth management solutions. *Webinar recorded after the market closed on Wednesday, April 22, 2020. Disclaimer: This material is distributed for informational purposes only. The investment ideas and opinions contained herein should not be viewed as recommendations or personal investment advice or considered an offer to buy or sell specific securities. Our statements and opinions are subject to change at any time, without notice and should be considered only as part of a diversified portfolio. Mutual funds and exchange-traded funds mentioned herein are not necessarily held in client portfolios. Data and statistics contained in this report are obtained from what we believe to be reliable sources; however, their accuracy, completeness or reliability cannot be guaranteed. You may request a free copy of the firm’s Form ADV Part 2A, which describes, among other items, risk factors, strategies, affiliations, services offered and fees charged. Past performance is not an indication of future returns. We do not provide legal or tax advice, nor sell insurance products. Tax, legal and insurance information contained herein is general in nature, is provided for informational purposes only, and should not be construed as legal or tax advice, or as advice on whether to buy or surrender any insurance products. Always consult an attorney or tax professional, or licensed insurance professional regarding your specific legal or tax situation, or insurance needs. © 2020 Adviser Investments, LLC. All Rights Reserved.