Investable Theme: Aging population base driving demand for dividend income

Ivy Global Equity Income Fund
07.20.17

With interest rates and bond yields at historic lows, the need for attractive dividend yield has never been greater.

Worldwide, a demographic trend has been growing — the population base is aging. And this movement is not limited to the U.S.; the eurozone and countries such as China and Japan are facing a similar demographic shift. For example, the aging population (60+) is expected to more than double by 2050.1 With Baby Boomers retiring and individuals living longer, we believe the need for income has never been greater. Interest rates and bond yields remain low, forcing investors to look elsewhere for yield. Funds that provide sustainable dividend yields may be increasingly popular with investors.


Investable Theme in Action: Ivy Global Equity Income Fund

Robert Nightingale, portfolio manager of Ivy Global Equity Income Fund, believes an aging population base is providing fundamental support for dividend-paying equities.

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Below are 3 examples of stocks we believe provide an attractive dividend yield and capital growth opportunity in an environment where investors are seeking income.

Johnson & Johnson (JNJ)

Vinci SA (DG:FP)

Marine Harvest ASA (MHG)


Past performance is not a guarantee of future results. The opinions expressed are those of the Fund’s portfolio manager and are not meant as investment advice or to predict or project the future performance of any investment product. The opinions are current through June 30, 2017, are subject to change based on market conditions or other factors, and no forecasts can be guaranteed. The holdings discussed are for illustrative purposes only and are not intended as a recommendation to purchase, sell, or hold any specific security or to engage in any investment strategy.

JNJ: 2.5%, DF:FP: 1.8%, MHG: 2.5% of net assets as of 06/30/2017.

Risk factors: The value of the Fund’s shares will change, and you could lose money on your investment. International investing involves additional risks including currency fluctuations, political or economic conditions affecting the foreign country, and differences in accounting standards and foreign regulations. These risks are magnified in emerging markets. Fixed income securities are subject to interest rate risk and, as such, the net asset value of the Fund may fall as interest rates rise. Investing in high-income securities may carry a greater risk of nonpayment of interest or principal than higher-rated bonds. Dividend-paying investments may not experience the same price appreciation as non-dividend paying instruments. Dividend-paying companies may choose to not pay a dividend or the dividend may be less than expected. These and other risks are more fully described in the Fund’s prospectus. Not all funds or fund classes may be offered at all broker/dealers.