A Closer Look at the Virtues of
Investing in Dividend-Paying Stocks
Research shows that allocating a portion of investable assets to dividend-paying stocks has the potential to enhance a portfolio’s overall risk/return profile. Our Deconstructing Dividends: A Closer Look at the Virtues of Dividend-Paying Stocks white paper presents compelling evidence as to why small- and mid-cap dividend-paying stocks should be part of a diversified portfolio.
Our research shows that dividend-paying small- and mid-cap stocks:
Historically deliver higher returns compared to non-dividend-paying stocks.
Demonstrate lower risk profiles relative to non-dividend-paying stocks.
Have the ability to participate in up markets while preserving capital in down markets.
Are lowly correlated with other equity classes, making them good portfolio diversifiers.
Typically are attractive investments in rising rate environments.
Learn more about our mutual funds that invest solely in the stocks of companies that pay a dividend:
NEW FUND RISK: The Westcore Smid-Cap Value Dividend Fund was launched effective December 16, 2016. There can be no assurance that the Fund will grow to or maintain an economically viable size. There may be limited or no performance history for investors to evaluate.
Effective April 29, 2016, new investors may again purchase shares of the Westcore Small-Cap Value Dividend Fund [WTSVX, WISVX].
The Westcore Global Large-Cap Dividend Fund was formerly named the Westcore Blue Chip Dividend Fund.
Investing in small- and mid-cap funds generally will be more volatile and loss of principal could be greater than investing in large-cap funds.
Dividends are not guaranteed. A company’s future abilities to pay dividends may be limited and a company may cease paying dividends at any time.
Investments in foreign companies are subject to special risks, including currency fluctuations, social, economic, and political uncertainties, which could increase volatility.