Dividends: a Lifeline in a Sea of Inflation

In 2022, we have continued to advocate for investors to increase their exposure to the dividend yield factor in the portfolio. Investors who took advantage of this strategy would have experienced significant relative gains in Q2 (see Factor Performance section) and year to date. However, we also know that many investors have missed this trade (see Institutional Style Positioning in our Investor Behaviour section), as evidenced by the historically underweight positioning in higher dividend stocks.