The Case for Dividend Strategies
Until recently, dividend-based strategies have lagged the market for several years primarily due to a combination of unprecedented outperformance from high “long duration” non-dividend paying growth stocks and the lagging performance of the defensive cohort within the dividend paying universe. Going forward, we believe there are several catalysts for sustained outperformance of dividend-paying stocks. Short term catalysts include continued market volatility and the risk of a recession. Long-term catalysts likely include more subdued market returns given the probability of prolonged sluggish economic growth, geopolitical risks, and somewhat higher inflation.
Sit Mutual Funds offers three stock dividend growth funds – Sit Dividend Growth Fund, Sit Small Cap Dividend Growth Fund, and Sit Global Dividend Growth Fund.