Dividend discipline

Last month’s column (‘Staying invested’, 7 July 2017) explained why the portfolios were remaining invested despite many commentators’ nerves as markets hit new highs – they were adhering to a tried and tested investment principle, while the investment climate generally is supportive of markets. But what is sometimes forgotten in the heat of debate and ‘noise’ about the markets’ direction is that staying invested also allows the full harvesting of dividends, which over time account for the vast majority of total returns.

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