JPMorgan Investment Funds - Global Dividend Fund: Multiple awards for outstanding returns.

Mit dem JPMorgan Investment Funds – Global Dividend Fund können Anleger weltweit in Dividendenaktien investieren, die die Fondsmanager in drei Varianten einteilen. Für seine Erfolge zeichnet BÖRSE ONLINE den Fonds in diesem Jahr mit drei €uro-FundAwards aus.

FundAward winner

Background: BÖRSE ONLINE and its sister publications €uro and €uro am Sonntag award the coveted €uro FundAwards to the funds and ETFs that have achieved the third-best, second-best or best performance in their investment category over one, three, five, ten or 20 years. The key factor this year was the performance as of December 31, 2022.

Protection against inflation

Inflation is on the decline worldwide. But many experts doubt that central banks such as the Fed or the ECB will be able to quickly reach their inflation targets of two percent again.
“We conducted an analysis over the last 50 years for the S&P 500 Index,” says Sam Witherow, who manages the JPMorgan Investment Funds – Global Dividend Fund with Helge Skibeli and Michael Rossi. “This shows that, on the one hand, stocks with high dividend yields and, on the other hand, stocks with high dividend growth have outperformed the broad market, especially in times of high inflation.”

Variant 1: Companies with a high dividend yield

The JPMorgan Global Dividend Fund focuses on three categories of stocks: firstly, companies with high dividend yields. We are looking for stocks with “a robust business and financial model, strong free cash flow generation and sustainably high payouts”. An example of this would be Chevron.

Variant 2: “Capital increaser”

The most important thing for fund managers are the “capital multipliers”. Such companies may not pay the highest dividends, but have a multi-year track record of dividend growth and the possibility of attractive reinvestment of profits generated by their respective business model. They also demonstrate the capacity and willingness to increase future dividends. “Examples of such stocks are Coca-Cola or Texas Instruments,” says fund manager Witherow.
Most people know Texas Instruments (TI) for its calculators - but the Americans are a leading supplier of analog semiconductors with strong growth potential thanks to increasing market shares. With a dividend yield of “only” around three percent, TI was able to increase its payout by 16 percent per year over a decade, an extremely rich source of income.

Variant 3: Companies with high dividend growth

Companies with high dividend growth – this is the third type of stock that Witherow is looking for. The basis here is a proven business model, plenty of scope for profit growth and a low payout ratio that has potential for increase.
“Such companies often only offer a dividend yield of one to two percent when we buy them for the fund,” says the manager. But the dividend growth results in an attractive dividend yield after a few years based on the initial investment. An example of this would be Microsoft.

ESG criteria in view

The JPMorgan Investment Funds – Global Dividend Fund has also been taking sustainability criteria into account for years. “An important finding is that companies that are reliable dividend payers also address environmental issues, focus on a wide range of stakeholders and also keep an eye on the issue of governance,” says Witherow.
Source: According to a report by www.boerse-online.de