Thirsty for Income? Try Dividend Growth

Chasing yield has become a challenging mission for investors in recent years. As yields collapsed in fixed income, investors flocked to bond-like substitutes such as high dividend-yielding stocks. Now that these stocks have become a bit pricey, we think companies with strong dividend-growth potential offer a better way to source equity income.

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Endowments and Foundations: How Should You Spend a Windfall?

Brian D. Wodar and Ashley E. Velategui If your endowment or foundation received an unexpected bequest, would you spend more now or would you hold spending steady in order to retain more income and boost your future capacity to spend?  

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Endowments and Foundations: Should a Windfall Change Your Investment Policy?

Brian Wodar and Ashley Velategui Board members at Uptown Community Foundation (UCF) faced an enviable dilemma: what to do when an unexpected bequest boosted UCF’s capital from $10 million to $12.5 million. One board member welcomed the chance to reduce portfolio volatility by cutting the stock allocation. Another had the opposite view: with increased financial strength, [...]

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Investing in an M&A Boom

Equity markets got off to a rough start in 2014, but a resurgence of corporate dealmaking has given investors reason to cheer. With executives’ confidence increasing, and companies sitting on a mountain of cash, we think that the stage has been set for a sustained recovery of US takeover activity.

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Don’t Pull the Plug on US Stocks

Investors are wondering whether the bull run in US equities is over. With the economy gathering steam and interest rates likely to head higher, we think stocks are still the best game in town—and value stocks neglected in the recent rally look even better.

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Don’t Forget the Beginning-of-Year Gifting Season

Tara Thompson Popernik (pictured) and Brian Wodar Many people see December 31 as the deadline for tax-advantaged giving each year. While that’s generally true for charitable donations, it may make sense to give one type of gift as early in the year as possible—the annual exclusion gift.

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Welcome, Taper

The Federal Open Market Committee’s statement that it will begin to taper its bond purchases in January is a good sign that the US economy continues to heal, in our view.

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Lessons Learned in 2013

In 2013, interest rates rose, bonds fell, equities soared, and US income-tax rates climbed higher. Before starting to place bets for 2014, investors would be wise to think about some important lessons from 2013.

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Detroit and Illinois Work Toward Resolving Their Issues

Recent negative news about Detroit’s bankruptcy and Illinois’s pension overhaul has raised fears about the poor financial health of many cities and states. And it’s shaken individual investors’ confidence in municipal bonds. Just how worried should investors be? Not very, in our opinion, as bond defaults remain very rare. In fact, we view recent events [...]

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Patterns of US Economic Recovery Suggest Faster Growth Ahead

Recoveries from past financially driven recessions have tended to be slow, and so far the current US recovery is following that pattern. But abundant liquidity and fading headwinds suggest to us that growth is likely to accelerate.

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