Income investing

Income investing continues to be an important factor to consider when building a portfolio.

This chart from our good friends at Schroders looks at Asian markets (historically high yielding companies) and the total return between price and dividend. You can see how important dividends become as time elapses and the power of compounding kicks in.

Another attractive quality for companies paying dividends is that it applies a certain corporate discipline to capital allocation for management teams.

Dividend investing has been an important tool for investors and will continue to be even in a world of higher rates and dominated by the focus on the next Nvidia earnings call!