Dividend Ideas:Playing dividend upside surprises

A strategy for Income investors to navigate a momentum-driven environment

    Given its defensive exposure, successful dividend investing is a really challenging task ina late-stage, story-driven bull market, which is increasingly boosted by positive economicdata and by investors’ declining risk aversion. In the Global Dividend Investor reports inMay 2017and August 2017we addressed this challenge by highlighting a momentumdrivenincome strategy that focuses on dividend plays with positive upside surprises interms of future dividend payments. These stocks have outperformed the MSCI World ACHigh Yield by 21.2% since 8May 2017. Moreover, this strategy is potentially attractive forvery different investors, namely High Yield/Income and Momentum investors – normallytwo very heterogeneous groups.