Dividend growth is the unsung hero of long term equity returns according to David Keir, Investment Analyst at Dundas Global Investors. Keir discusses the four components of accumulating pension returns; capital, dividend, compounding and contributions. Upon retirement, two of the most important components -compounding and contributions – are switched off. According to his strategy this means the dividend stream must be growing faster than inflation to keep retiree spending power. So, where do you look for those dividends? The Dundas fund seeks out growth businesses, which have the ability to sell more units profitably year after year and that’s why Dundas has invested in companies such as Assa Abbloy, Baxter and Paypal.
Learn more by following the link below to watch the full AusBiz interview.