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Income at Home, Dividends Abroad

2.2.15With the ECB set to buy more than one trillion dollars of debt, Eurozone interest rates could fall even further in 2015.

Eurozone interest rates are far below rates in the U.S., and likely have exerted a gravitational pull downward on U.S. rates (top frame). Low rates coupled with the prospect of Euro weakness mean that foreign developed bond positions could struggle, in our view.

At the same time, we have written extensively about significantly higher dividend yields for overseas equity markets.

Accordingly, we believe income-oriented investors should have their fixed-income portfolios centered on the U.S., while leaning heavily on overseas equity markets to generate dividend income.

DISCLAIMER: Past performance does not predict future results. This report is based on data obtained from sources we believe to be reliable. Hefren-Tillotson does not, nor any other party, guarantee the accuracy or completeness of this report or make any warranties regarding results obtained from its usage. All opinions and estimates included in this report constitute the firms judgment as of the date of this report and are subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation to buy or sell the securities herein mentioned.

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