In this second of a two-part series, Kera Van Valen CFA, co-Portfolio Manager of the Grant Samuel Epoch Global Equity Shareholder Yield Funds, discusses the importance of shareholder yield that is supported by growing free cash flow. After all, shareholder yield that is paid without the support of growing free cash flow cannot be sustained. 

Kera makes two important points:

  • Some yield-oriented strategies focus on buying stocks with high dividend yields, but the emphasis should be on dividend sustainability and growth.
  • A shareholder yield portfolio needs diversification in terms of sectors or countries but also in terms of cash-flow growth and sources of shareholder yield.

To read the article, click here.

To read the first article in the series, click here.

GSFM

GSFM focuses on creating strong alliances with high calibre investment managers, in Australia and overseas, which offer quality investment strategies not available to Australian retail and institutional investors. Today, our portfolio spans global, Australian and Asian equities, fixed income and private credit, as well as alternative strategies.

Information provided is general information and is for educational purposes only, and does not include, or constitute as, financial product advice.