The growing number of tech stocks paying dividends could reduce the diversification role that dividend income strategies play in portfolios, according to the latest podcast for FT Adviser Talking Point.
Speaking as a guest on the podcast, Joris Fransen, head of the dividend and value team at Van Lanschot Kempen, said: “I think that you see some of the more growth-oriented strategies are moving more towards the broad market so there is indeed a chance that they will be less diversified, but again it depends on what kind of dividends do you own.”
During the podcast Fransen, who was joined by Daniel Haydon, manager – research analyst at Morningstar, spoke about why tech companies are starting to pay dividends and how this trend could affect the broader market.
The discussion also explored how the trend of tech companies paying dividends could affect different types of income strategies, how the emergence of tech dividends might influence portfolio composition, and what bearing this would have on the importance of income strategies as a diversifier.
Please click on the link above to listen to the podcast.
