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Fixed income

Yield-at-cost: seeing the whole picture

David S. Park
Portfolio Manager
David A. Chalupnik
Head of U.S. Active Equities Portfolio Management
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While many investment products provide a consistent income stream, the payments are often fixed and don't increase over time. Conversely, companies that are committed to rewarding shareholders through increasing dividend payments can provide investors with the potential for a growing income stream and stock price appreciation. Investors who focus too much on current dividend yield may overlook a wide universe of companies with attractive fundamentals and the potential for impressive dividend growth in the future. We believe investors are best served by approaching dividend-oriented portfolios from an integrated, total return perspective that considers both income and capital gains over the long term.

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The views and opinions expressed are for informational and educational purposes only as of the date of production/writing and may change without notice at any time based on numerous factors, such as market or other conditions, legal and regulatory developments, additional risks and uncertainties and may not come to pass. This material may contain “forward-looking” information that is not purely historical in nature. Such information may include, among other things, projections, forecasts, estimates of market returns, and proposed or expected portfolio composition. Any changes to assumptions that may have been made in preparing this material could have a material impact on the information presented herein by way of example. Past performance does not predict or guarantee future results. Investing involves risk; principal loss is possible.

All information has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such. For term definitions and index descriptions, please access the glossary on nuveen.com.


Important information on risk
All investments carry a certain degree of risk, including possible loss of principal, and there is no assurance that an investment will provide positive performance over any period of time. Equity investments are subject to market risk or the risk that stocks will decline in response to such factors as adverse company news or industry developments or a general economic decline. Debt or fixed income securities are subject to market risk, credit risk, interest rate risk, call risk, tax risk, political and economic risk, and income risk. As interest rates rise, bond prices fall. Non-U.S. investments involve risks such as currency fluctuation, political and economic instability, lack of liquidity and differing legal and accounting standards. These risks are magnified in emerging markets. This report should not be regarded by the recipients as a substitute for the exercise of their own judgment. It i s important to review your investment objectives, risk tolerance and liquidity needs before choosing an investment style or manager.

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