The Idea Farm Weekly #2

August 26, 2012

Below is our second issue of The Idea Farm Weekly!  Please let us know your thoughts and suggestions, and feel free to pass along to those that might find this email of interest.

In this issue we highlight a report from MRB Partners, a London/Montreal/NYC investment research firm, with their research piece The Macro Research Board.

Download the issue here:  Dividends:  In Search of Safety and Growth

Summary:  Dividend-based investment strategies should produce superior total returns on a multi-year basis, given tepid global economic growth and moderate price appreciation. That said, the outlook for dividends varies markedly across countries and sectors, and some seemingly appealing dividend opportunities break down upon closer scrutiny. Most high-yielding country markets embody considerable risks, but Germany, Norway and Sweden are attractive on a long-term basis. Despite a poor domestic economic outlook, the U.K.’s high dividend yield also is appealing. On the sector front, we are unenthusiastic about high-yielding telecoms and utilities, and favor consumer staples and health care as a dividend play because of their better growth potential. Energy is also attractive as a dividend play, given reliability and growth prospects.

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About MRB Partners:

MRB Partners (The Macro Research Board) is an independent investment research and consultancy firm, specializing in providing top-down global asset allocation advice and ideas to investment managers around the world. We develop investment strategy and  recommendations by identifying the key structural and cyclical themes driving the global economy and asset markets, utilizing rigorous and comprehensive proprietary forecasting models and indicators, while leveraging the extensive experience of our senior staff.