Global Quality Dividend Payers Index

Harvesting low-hanging fruits


Open End PERLES on UBS Global Quality Dividend Payers Index TR

I. Investment idea: quality asserts itself

Quality asserts itself in the long term – even on the exchange. Following this basic principle, the UBS Global Quality Dividend Payers Index is banking on 30 selected value equities. This selection occurs quarterly from a global equity universe of more than 3,300 securities. The basic idea behind it is that an investment in selected quality equities should offer a more stable performance compared to the overall market.

II. Does an attractive dividend yield constitute a value equity?

Value equities are characterized by sustainably profitable business on the part of the respective corporation. Since flourishing companies as a rule distribute an attractive dividend to their shareholders when compared to their sector, a high dividend yield (ratio of dividend to the share price) is generally considered a strong indication of a value equity. Nonetheless, a high dividend yield should not serve separately as the sole selection criterion, because a high dividend yield can also be the result of a previously strong price loss and point to problems in business. In addition, telecommunications securities and utilities, for instance, traditionally boast a relatively high dividend yield, but are not necessarily among the equities with the strongest prospects for growth.

  • Opportunities & Risks