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“I feel like every retail investor I speak to at the moment is chasing resources, agricultural commodities or a transformational small cap to instantly patch up their portfolio performance and restore their confidence again,” he said.
“Unfortunately, if your investment strategy looks more like gambling (rather than disciplined analysis and proper portfolio construction) chances are you’ll end up with gambling-like expected returns (i.e. 0.00%)
“Somewhat ironically, the opportunity for outperformance is often simpler and more obvious than many people appreciate.”
Mature businesses, with leading market positions and reliable, growing cash flow make excellent, sustainable sources of outperformance in times of volatility,” Laretive adds.
“Their large and growing dividend yields represent a sustainable source of income for retirees, tax-effective returns for those in the higher tax brackets and a great way to accelerate savings for those young people looking to save for a home or overseas trip.”
The three stocks covered below fit the bill, according to Laretive, for sustainable, growing dividends.