Dividends have historically been a meaningful component of total return for stocks, with dividend payers outperforming nonpayers in both bull and bear markets*. Dividend stocks also benefits from capital appreciation and can help clients build wealth faster because of their growing capital base.
*Source: Professor Kenneth French, Tuck School of Business, Dartmouth, for the time period of July 1927 through December 2020. High-dividend payers are the top 30% of the universe of yielding stocks, market cap-weighted, and reconstituted. This information is provided for illustrative purposes only. It is not representative of any client account or composite.
The investment strategy described herein is implemented in a separately managed account (SMA) maintained by a qualified custodian. Investors should contact their financial advisor to establish an SMA. Parametric also subadvises a fund with the strategy offered and distributed by our affiliate, Eaton Vance Distributors, Inc., a registered broker-dealer.