BGF North American Equity Income Fund
Yields on traditional fixed income products and cash deposits are at historic lows. Against this backdrop, income from equities offers an extremely interesting alternative.
Consider Dividend Growth Equities for Income
- Equities currently offer high yields and growth prospects: Yields on traditional fixed income products and cash deposits are at historic lows
- Real dividends grow while fixed coupon purchasing power erodes over time: Historically, the dividend payments of the S&P 500 have grown at a rate faster than inflation
- Combining above-average dividend yield and dividend growth has improved risk/return results: Over 90% of equity returns have historically been derived from a combination of dividends and dividend growth*
Fixed coupon purchasing power erodes over time, but real dividends grow
Change in real income for dividends of the S&P 500 versus a fixed coupon of US$100,0001
1 Reflects the compound annual growth rate of real dividend income generated by the S&P 500 since 1985.
Source: Bloomberg 12/31/85 to 12/31/11. Dividends are not reinvested. Dividend income reflects a hypothetical investment of US$2.12 million into the S&P 500. The performance of any index is not indicative of the performance of any particular investment. Investors cannot invest directly in an index.
Building Wealth Through Dividend Growth
The BGF North American Equity Income Fund aims to identify investments that will both increase in value over the long term and provide an attractive current income.