Report on High Dividend Stocks in Rising Rate Environments

With the Fed expecting to continue to raise rates over the next few years, many investors are eager to understand how high dividend yielding stocks may react. We’ve prepared an analysis based on the performance and behavior of the highest decile¹ of dividend paying stocks from 1960 to 2017.

Key Findings Include:

The full report on High Dividend Stocks in Rising Rate Environments can be explored here.

Authored by: Jay Jacobs, CFA

Date:
Nov 5, 2018

Category:
Reports

Topics:
Dividends

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Footnotes

1. Deciles are ten tiers of stocks based the ranking of a common characteristic. For this analysis, all stocks in the considered universe are ranked by dividend yield and those in the 90th percentile or higher are included in the highest, or 10th decile. Stocks in the 80th to 90th percentile range are included the 9th decile, and so on. Stocks with the lowest dividend yields are in the 0th to 10th percentile range and are included in the lowest, or 1st decile.

Sources

Portfolio returns sourced from Fama and French Portfolios Formed on Dividend Yield, where all stocks listed on NYSE, AMEX, and NASDAQ have been considered. Stocks have been segregated into 10 portfolios (deciles) based on dividend yield (D/P).

Rising interest rate regimes sourced from the US Federal Reserve, defined as periods where the yield of 10 Year US Treasuries increased by more than 100 basis points over a period of 10 months or longer.

This information is not an offer to sell or a solicitation of an offer to buy shares of any Fund to any person in any jurisdiction in which an offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction.

Shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.

Carefully consider the Funds’ investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Funds’ full or summary prospectus, which may be obtained by calling 1-888-GX-FUND-1 (1.888.493.8631), or by visiting globalxetfs.com. Read the prospectus carefully before investing.

Global X Management Company LLC serves as an advisor to Global X Funds. The Funds are distributed by SEI Investments Distribution Co. (SIDCO), which is not affiliated with Global X Management Company LLC. Global X Funds are not sponsored, endorsed, issued, sold or promoted by Solactive AG, FTSE, Standard & Poors, NASDAQ, Indxx, or MSCI nor do these companies make any representations regarding the advisability of investing in the Global X Funds. Neither SIDCO nor Global X is affiliated with Solactive AG, FTSE, Standard & Poors, NASDAQ, Indxx, or MSCI.

Investing involves risk, including the possible loss of principal. High yielding stocks are often speculative, high risk investments. These companies can be paying out more than they can support and may reduce their dividends or stop paying dividends at any time, which could have a material adverse effect on the stock price of these companies.

Indexes are unmanaged and it is not possible to invest directly in an index.

Report on High Dividend Stocks in Rising Rate Environments

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