Four High-Yield Traps to Avoid
"If investors focus only on buying the highest yielding stocks, who is doing the work on what not to own?"
Jeremy Burge, Growth and Income portfolio manager, Capital International
In last week's Growth and Income webinar, "The search for sustainable dividends," Jeremy emphasized an often-overlooked element of portfolio construction: analyzing what not to own.
While he stressed that each company must be analyzed individually, Jeremy outlined four potential traps to avoid when investing for yield. See the webinar highlights for details:
Webinar: The search for sustainable dividends
October 28, 2011
- Highlights
- Exhibits
- Growth and Income overview (for clients): Series A | Series F
- Audio replay: 888/203-1112; code 4248194 (Advisors only; through 11/27)
Growth and Income portfolio -- features to emphasize:
1) A focus on sustainable and growing dividends
2) Experienced investment professionals with multiple perspectives
3) Best of Canada + best of the world
4) Low MERs
5) No capital gain distributions expected this year (based on 10/14/11 estimate)
6) Historically attractive peer group rankings and downside resilience
I especially liked analyst Ernie Nutter's comment during the webinar (see page 2 of the Highlights): "I look for 'coffee can stocks:' those I could put away in a can, and bring out in five to ten years, after they've appreciated nicely." That sums up well Capital's long-term investment philosophy.
