Focus on These Factors for Bigger Dividends

If there is one trend that’s taking the investment world by storm, it has to be fundamental indexing, otherwise known as smart-beta investing. Here, investors seek to exploit the concept of factors in order to select stocks or other assets to build market-beating portfolios. The idea is that if you can select the right combination or find the “secret sauce” that makes gains happen, you can potentially tilt or construct a portfolio for better returns.

And so far, smart-beta seems to win over investors both big and small.

Dividend investors should be looking at smart-beta as well. While dividend yield and growth could be considered factors in and of themselves, top dividend stocks often have several factors in common. It turns out that a few of the popular factor varieties naturally lend themselves to dividend investing. With that, investors need to get reacquainted with smart-beta investing.

Could the cyclical dividend stocks be the key to gains? Find out here.