Executive summary
• Longstanding “all growth” or “all income” schools of thought about funding retirement need to shift to approaches that combine the two.
• An investment strategy generating attractive current income and which provides an opportunity for dividends to grow over time can generate both long-term savings and fund current income needs for retirees.
• The most effective dividend growth portfolios tend to widen their net to include companies outside the U.S., where companies prefer to return cash to shareholders through dividends, rather than U.S.-style buybacks.
