It’s understandable why many are avoiding stocks. A close look, however, shows that equities may be more attractive than many think. Today, yields on equities are higher than government bond yields for the first time in a generation, making stocks a powerful tool to generate income and grow assets.
Equity Yields Are Outpacing Fixed Income1
"So what do I do with my money?"
Not all stocks, however, are created equal. While it’s no secret that many economies, particularly in the developed world, are struggling, that doesn’t mean all companies in those markets are. There are still long-term winners – and the key is to identify these high-quality companies. These sorts of companies can be found in countries around the globe and in all sizes, and have three common characteristics:
1. A differentiated, competitive business model, often one with pricing power and exposure to faster growing areas of the world, such as emerging markets.
2. The ability to generate consistent cash flows across an entire business cycle and a commitment to return that cash to shareholders.
3. Healthy balance sheets with low levels of debt.
INVESTMENT IDEAS TO CONSIDER
BlackRock Equity Dividend Fund
A conservative, core holding that has amassed a record of strong performance through diverse market environments by focusing on companies that pay and grow their dividends.
BlackRock Global Dividend Income Fund
A global equity portfolio designed to provide investors meaningful income, total return and a degree of downside protection by focusing on high quality companies that pay and grow their dividends.
iShares Core S&P 500 ETF
Access 500 large cap US stocks in one trade and build the base of your stock portfolio.
iShares MSCI EAFE Index Fund
Gain transparent, liquid access to 900+ developed market stocks.
iShares High Dividend Equity Fund
Access 75 high-quality, higher-yielding US dividend paying stocks.