Dividend Strategies for Countering Market Volatility

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Strategy Espresso

In October, global equities endured their worst performance since May 2012, with US growth posting a negative return of almost 2 standard deviations. Last week we continued to witness the same bearish sentiment that we did in October. The increased volatility in the equity markets, along with rotation out of growth stocks, is not a surprise as heightened volatility often accompanies a late earnings cycle. Faced with such heightened volatility, investors may wish to consider dialling down on risk and opting instead for more defensive strategies. One potential avenue for more defensive exposure would be allocating to quality dividend strategies, such as the US Dividend Aristocrats.