What is the best way to value quality global stocks?

SPECIAL REPORT

When it comes to global equity investing, dividends matter more than first perceived, writes Stuart Reeve, co-manager of the BlackRock Global Equity Income fund.

Companies that pay consistent, rising and sustainable dividends tend to be high quality, with robust business models, sustainable growth prospects and disciplined management teams. This often means they are well positioned to weather the bad times. The market knows this and rewards it, so share prices tend to be less volatile over the market cycle than those of stocks that do not pay dividends. Equity income investing can provide a long-term investment solution: it can be a powerful source of returns throughout the cycle and allow investors to get sufficient income and capital growth ...