December 31, 2020
Dividend durability was certainly tested in 2020, but negative payout action earlier in the year helped investors identify cream of the crop dividend stocks.
“This model portfolio seeks to provide capital appreciation and high current dividend income, through a globally diversified set of WisdomTree’s dividend income-oriented equity ETFs. The model strives to deliver dividend income in excess of the global benchmark of equities,” according to the issuer.
Making this model portfolio relevant for 2021 is its quality leanings, meaning many of its holdings aren’t dependent on risky yield-weighting.
“A high dividend yield can indicate the market has soured on a firm’s prospects and may be skeptical of its ability to continue to maintain its dividend at its current level,” notes Morningstar’s Ben Johnson. “Keying on dividend yield will lend a value orientation to a portfolio and may put investors at risk of catching a falling knife (or two).”
Narrow Investing Focus? A Smart Model Portfolio to Go Global December 21, 2020
Asset allocators are pointing to a 2021 resurgence for ex-US equities, but few are saying it’s time to be bearish on domestic stocks. Investors can turn to exchange traded fund strategies to expand their portfolios into international markets. Advisors can turn to model portfolios for smart global allocations.
“WisdomTree’s collaboration with Professor Siegel brings a unique solution to investors with mid- to long-range time horizons who are trying to balance current income needs with longevity risk,” according to the issuer. “The Siegel-WisdomTree Global Equity Model Portfolio provides a diversified exposure to U.S and International stocks and tilts toward factors such as dividend yield and low P/E ratios to seek higher income generation and outperformance potential. This strategy may include both WisdomTree and non-WisdomTree ETFs.”