As bond yields begin to compete with equities, we recommend an ecumenical approach to equity income and growth in dividends.
One of the major impediments to using stocks for yield has been the earnings recession over the last five quarters. The continuation of that trend would have undermined the stability of the dividend payout.
The market, however, has now withstood the effects of a stronger dollar on multinational earnings and withstood the energy sector’s adjustment to oil at $50 per barrel. And the S&P 500 is finally growing earnings again, year over year.
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