The Global 45 Dividend Strategy Portfolio is an enhanced index unit investment trust that invests in stocks of foreign and domestic companies. The strategy contains three approximately equally weighted dividend oriented strategies: the Select 10 Industrial Strategy, the Select S&P Industrial Strategy, and the EAFESM Select 20 Strategy.
Why consider investing in the Global 45 Dividend Strategy Portfolio?
The portfolio invests in stocks of foreign and domestic companies selected by applying separate uniquely specialized strategies. The portfolio combines three investment strategies: the Select 10 Industrial Strategy, the Select S&P Industrial Strategy, and the EAFESM Select 20 Strategy.
Here are some reasons why the Global 45 Dividend Strategy Portfolio may be a viable addition to your portfolio:
- Foreign Exposure
- Multi-Index Exposure
- Potential Decreased Volatility
- Potential Dividends
Stock Selection Process
The Global 45 Dividend Strategy Portfolio invests in stocks of foreign and domestic companies. The strategy contains three approximately equally weighted dividend oriented strategies:
- The Select 10 Industrial Strategy selects the ten highest dividend-yielding stocks in the Dow Jones Industrial AverageSM (DJIASM) for the portfolio.
- The Select S&P Industrial Strategy
- Beginning with the Standard & Poor's Industrial Index, select only those stocks ranked either A or A+ by S&P Capital IQ's Earnings and Dividend Rankings.
- Eliminate stocks that are in both the S&P Industrial Index and the Dow Jones Industrial Average.
- Select stocks with the highest market capitalization (the top 75 percent).
- Select the 15 highest dividend-yielding stocks.
In addition, a stock will be excluded if, based on publicly available information as of the selection date, the company is the target of an announced business acquisition which Invesco expects will close within six months of the date of deposit.
- The EAFESM Select 20 Strategy
- Start with the Morgan Stanley Capital International EAFE (Europe, Australasia and Far East) Index.
- Assess company quality. This consists of applying sales growth, earnings and dividend performance screens.
- Stocks with the highest market capitalizationthe top 75 percentare chosen.
- Select a portfolio of the twenty highest dividend-yielding stocks.
Please note that stocks traded in Singapore are eliminated from the portfolio strategy to help limit exposure to uncertain political and economic conditions. Stocks which are passive foreign investment companies are also eliminated because of the negative tax treatment which could result from such ownership.