2024-05-28 04:49:14 ET
Summary
- When seeking higher dividend yields without compromising on quality, investors might consider international equities.
- FIDI is one of the existing low-cost options for high-dividend factor exposure.
- FIDI targets a developed world equity universe utilizing a tripartite factor score, with the dividend yield as a cornerstone.
- The problem is that FIDI is rife with issues, as its past performance has been lackluster and growth in distributions has been far from ideal.
- Since FX exposures are a wild card and there are no sufficient bearish arguments, I believe a Hold rating should be optimal.
Amid the bull market, total return investors see their theses materializing as portfolios gradually become bulkier. However, such periods of market ebullience do have a few side effects, with high-yield investors being among those affected. The issue here is that their opportunities in the equity universe are shrinking as multiples are stretching further. There are a few solutions they might consider....
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For further details see:
FIDI: Relatively Appealing Yield Comes With Underperformance, Worrying Downside Risk