Axel Riedel has been working at State Street Global Advisors for 18 years. Getty Images/State Street Global Advisors
Dividend strategies can be interesting for investors for diversification, says Axel Riedel of State Street Global Advisors.
The asset manager offers, among other things, ETFs that rely on dividend aristocrats, i.e. companies with consistent or increasing dividends.
“Dividend strategies are very intuitive. “You get paid out if the company behind it has a solid strategy,” says Axel Riedel. The dividend expert has been with State Street Global Advisors for 18 years and currently works in the position of Vice President for the asset manager. State Street Global Advisors is one of the world‘s largest asset managers with assets under management of almost $4.13 trillion (around €3.8 trillion).
Why dividend ETFs can be a useful addition to your portfolio
“The ETFs that track the S&P 500 and the MSCI World have recently been particularly popular with our investors. However, since both the MSCI World and the S&P 500 rely heavily on growth stocks, dividend strategies for diversification can be interesting for investors,” says Riedel. Because dividend stocks usually have a defensive character. Which means that these are often stocks that generally behave in a stable manner. Consumers demand companies’ products or services regardless of economic developments.
“But Microsoft and Apple are now also paying dividends,” adds Riedel. Which means: You can definitely find growth stocks that make distributions. Growth stocks are stocks that have above-average sales and profit growth.