Monday, March 4, 2013

GLOBAL X * FW: High Dividends: Myth vs. Reality

 
     
MARCH
2013
High Dividends: Myth vs. Reality

 

While most investors assume that higher yield companies correspond directly to higher risk, recent research from Global X Funds and Indxx reveals some surprising results:

  • Dividend paying stocks outperformed non-dividend paying stocks over time, and this outperformance generally increased as the dividend yield increased: the highest return in this study came from the 10-17% dividend paying group.
  • Risk adjusted returns generally increased with dividends, with the highest risk adjusted return coming from 10-17% dividend payers.
  • Contrary to the perception that dividend stocks may be currently overvalued, dividend stocks trade at discounts to their historical valuations across dividend categories.

To read the complete study, please click on the link here.



 
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Carefully consider the Funds' investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Funds' prospectus, which may be obtained by calling 1-888-GX-FUND-1 (1.888.493.8631), or by visiting www.globalxfunds.com. Read the prospectus carefully before investing.

High yielding stocks are often speculative, high risk investments. These companies can be paying out more than they can support and may reduce their dividends or stop paying dividends at any time, which could have a material adverse effect on the stock price of these companies and the Fund’s performance.

Investing involves risk, including possible loss of principal.

All registered investment companies, including Global X Funds, are obliged to distribute portfolio gains to shareholders at year-end regardless of performance. Trading Global X Funds will also generate tax consequences and transaction expenses. The information provided is not intended to be tax advice. Tax consequences of dividend distributions may vary by individual taxpayer. There is no guarantee that dividends will be paid.

To receive a distribution, you must have been a registered shareholder of the relevant Global X Fund on the record date. Distributions are paid to shareholders on the payment date. Past distributions are not indicative of future distributions.

Global X Management Company, LLC serves as an advisor to the Global X Funds. The Funds are distributed by SEI Investments Distribution Co., which is not affiliated with Global X Management Company or any of its affiliates. 
 

 
 

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