Fixed Income
Figure 1: Dividend-focused strategies can complement growth-focused strategies
Past results are not a guarantee of future results.
MSCI AC indices returns from 31 July 2012 to 31 July 2022, shown in US$ and with net dividends reinvested. P/E: price to earnings. Sources: Refinitiv, Capital Group
Figure 2: Value stocks have had weaker profitability, earnings growth and dividend growth
Past results are not a guarantee of future results.
Data for MSCI AC World indices from 31 July 2002 to 31 July 2022. Sources: FactSet, Capital Group
Return on invested capital is a profitability ratio that measures the earnings acquired after tax but before interest is paid relative to invested capital.
EBITDA margin is an indicator of financial condition and measures operating profit relative to revenue. Sources: FactSet, Capital Group
1. The Return of Global Inflation, February 2022. Source: World Bank
2. World Economic Outlook, April 2022. Source: IMF
3. Q222 Earnings Insight report. Source: FactSet
4. Based on S&P 500 total returns in US$ from 1930 to 2021. Source: Ned Davis Research
5. Based on returns from 31 January 1938 to 28 February 2022 in US$ for S&P 500. Sources: Capital Group, Standard & Poor’s, Robert Shiller, Morningstar Direct, FactSet
6. Based on MSCI World dividends-per-share and earnings-per-share drawdowns in US$. Sources: FactSet, Capital Group
7. Based on year-to-date returns for MSCI AC World, MSCI AC World Value, MSCI AC World Growth, MSCI AC World High Dividend Yield, MSCI AC World Quality and MSCI AC World Small/Mid Cap with net dividends reinvested in US$ to 30 June 2022. Source: Refinitiv, Capital Group
8. MSCI AC Word Value and MSCI AC World High Dividend Yield are both market cap weighted indices derived from MSCI AC World but with some differences in methodology. The Value index applies z-scores to securities based on their characteristics, which are then aggregated to inform composition. The High Dividend Yield index applies a 5% issuer cap and includes sustainability and persistence of dividend criteria as well as yield to inform composition. Cyclical and defensive references are based on MSCI’s Cyclical and Defensive indices, which divide sectors accordingly. Source: MSCI
9. Period following the GFC is from 30 April 2010 to 30 June 2022. Sources: Refinitiv, MSCI, Capital Group
Risk factors you should consider before investing:
Fixed Income
Fixed Income
Market Volatility
Federal Reserve
RELATED INSIGHTS
Markets & Economy
Multi-Asset
Long-Term Investing
Past results are not a guarantee of future results. The value of investments and income from them can go down as well as up and you may lose some or all of your initial investment. This information is not intended to provide investment, tax or other advice, or to be a solicitation to buy or sell any securities.
Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. All information is as at the date indicated unless otherwise stated. Some information may have been obtained from third parties, and as such the reliability of that information is not guaranteed.