Investment insights from Capital Group
Figure 1: Dividend growers have outpaced non-dividend payers over the long term
Past results are not a guarantee of future results
Data from 31 December 1989 to 31 December 2021. Returns for global universe are total returns in USD (with gross dividends reinvested) calculated as a weighted average of regional portfolio returns. The regional portfolios are all equal weighted and defined as the 1,000 largest companies in the respective MSCI IMI indexes for North America (50% weight), Europe (25%) and Japan (10%) and of the 500 largest companies in the Emerging Markets (10%) and Pacific ex Japan (5%) indexes. The universe constituents were rebalanced quarterly, and volatility is based on monthly returns. All companies comprising the global universe are split into dividend payers and non-dividend payers. A company was classified as a "dividend payer" if it paid a dividend during the previous 12 months. A company was classified as a "dividend grower" (a subset of payers) if its trailing 12-month dividend per share increased relative to one year earlier. Sources: Compustat, Worldscope via FactSet, MSCI, Capital Group
1. Source: Capital Group
Risk factors you should consider before investing:
Long-Term Investing
Emerging Markets
Global Equities
Emerging Markets
RELATED INSIGHTS
Global Equities
Interest Rates
Past results are not predictive of results in future periods. It is not possible to invest directly in an index, which is unmanaged. The value of investments and income from them can go down as well as up and you may lose some or all of your initial investment. This information is not intended to provide investment, tax or other advice, or to be a solicitation to buy or sell any securities.
Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. All information is as at the date indicated unless otherwise stated. Some information may have been obtained from third parties, and as such the reliability of that information is not guaranteed.
Capital Group manages equity assets through three investment groups. These groups make investment and proxy voting decisions independently. Fixed income investment professionals provide fixed income research and investment management across the Capital organization; however, for securities with equity characteristics, they act solely on behalf of one of the three equity investment groups.