354. What makes a great income investment?

Dividend investing remains a popular strategy, but what makes a great dividend stock? Nick Clay, manager of the TM Redwheel Global Equity Income fund, explains the key characteristics of strong dividend-paying companies, the sectors offering the best opportunities, and the macroeconomic factors influencing global equity income investing. We also discuss the role of dividends in different market cycles and what investors should consider when building a diversified portfolio.

What’s covered in this episode: 

• Why the fund is significantly underweight the US
• Are we heading towards the end of capitalism? 
• Why a buy-and-sell discipline is so important when markets go to extremes
• Selling out of Qualcomm and TSMC
• And buying into LVMH
• It’s not doom and gloom in luxury names, or China
• Are we headed for a prolonged period of inflation?
• Why inflation isn’t high enough
• Three reasons to add income today
• Why the Mag 7 won’t protect you during market volatility

More about the fund: Nick Clay is a highly experienced manager and the investment strategy on the TM Redwheel Global Equity Income fund is well proven. It has a true contrarian nature backed up by a logical and disciplined philosophy. This leads to an attractively-yielding income fund (every holding must yield at least 25% more than the broader market at the point of purchase) that also allows for capital return from a concentrated portfolio.

Learn more on fundcalibre.com

Please remember, we’ve been discussing individual companies to bring investing to life for you. It’s not a recommendation to buy or sell. The fund may or may not still hold these companies at the time of listening. Elite Ratings are based on FundCalibre’s research methodology and are the opinion of FundCalibre’s research team only.