In times of economic and political turbulence, investors seeking stability and long-term value should focus on companies still issuing dividends, according to Kera Van Valen, portfolio manager of GSFM fund manager partner, Epoch Investment Partners.
“Companies with consistent, well-managed dividend policies signal financial health, disciplined capital allocation, and a commitment to returning value to shareholders, even during uncertain periods,” Van Valen said.
“History shows that companies with stable and growing dividends tend to outperform companies that either don’t pay a dividend or have an inconsistent dividend policy resulting in cuts or reductions to dividends,” she added.
A diversified portfolio of high-quality companies that can generate sustainable free cash flow and consistently return cash to shareholders in the form of dividends, share buybacks, and debt reduction can deliver outperformance over the long term for investors.
