Video: Using Dividend Stocks and Managed Volatility Strategies

The secular decline in interest rates is over, according to QS Investors’ Chief Investment Officer Rosemary Macedo. As a result, investors need to understand the opportunity cost of holding high levels of cash and fixed income in their portfolios. As an alternative, investors should look at holding lower volatility, dividend paying stocks or managed volatility equity strategies.

Macedo explains that while capitalization weighted equity strategies can have a high level of volatility, which may be undesirable, both dividend oriented stocks with strong cash flows, and managed volatility strategies, aim to reduce risk and can potentially be a good substitute for cash or fixed income holdings.

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