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A Time for Dividend Growers

An Opportune Time for Dividend Growers?

January 31, 2023

Markets Fraught with Uncertainty

Recession fears, geopolitical tensions, elevated inflation, and the threat of further interest rate hikes have left many financial intermediaries searching for solutions for their clients.. Whether you are seeking to increase income, employ a fixed income alternative, reduce equity risk, enhance risk-adjusted performance, or simply recalibrate your portfolios, a dividend growth strategy may be right for you.

An Opportune Time for Dividend Growers?

Given the current economic backdrop, a dividend growth strategy focusing on companies that are expected to increase dividends and have strong fundamentals may be attractive to investors.

  • Income Potential
    Dividend growth strategies focus on companies believed to have sustainable and growing dividends. For investors, this means outsized and growing income potential.
  • Access Quality
    Dividend growth companies tend to be well capitalized with strong revenue streams and free cash flows, making them higher quality companies on a relative basis.
  • Utilize an Attractive Entry Point
    Valuations are at relatively more attractive levels than they have been in some time. Now may be a good time to access dividend growth.

Take an Active Approach

An environment of enhanced volatility and dispersion can provide greater opportunity for active management to outperform. Because passive management is beholden to the rules of an index, passive managers often become forced buyers and sellers of stocks at the time of rebalancing, which may not be optimal.

We believe dividend growth investors should take an active approach and leverage a skilled manager to unlock value and navigate uncertain markets.

The Harbor Dividend Growth Leaders ETF (Ticker: GDIV)

Consider the Harbor Dividend Growth Leaders ETF as your preferred dividend growth strategy going forward. GDIV is actively managed by Westfield Capital, a specialist in the development and management of dividend growth strategies.

GDIV offers:

  • Income & Growth Potential. The investment team seeks to invest in companies with growing dividend streams with equity upside participation during periods of market advances and improved downside support during market declines.
  • Experienced & Tenured Team. Continuity and experience of senior team ensures a repeatable process over time. The portfolio manager is supported by career sector analysts with deep domain expertise across the capitalization spectrum.
  • Growth-at-a-Reasonable-Price. Westfield employs a Growth-at-a-Reasonable-Price (GARP) investment style by seeking to invest in companies with underappreciated earnings growth trading at reasonable valuations, believing stock prices will ultimately follow earnings growth.

Explore GDIV

Harbor Dividend Growth Leaders ETF (GDIV)

Important Information

All investments involve risk including the possible loss of principal. There is no guarantee that the investment objective of the Fund will be achieved. Stock markets are volatile and equity values can decline significantly in response to adverse issuer, political, regulatory, market and economic conditions. At times, a growth investing style may be out of favor with investors which could cause growth securities to underperform value or other equity securities. Since the Fund may hold foreign securities, it may be subject to greater risks than funds invested only in the U.S. These risks are more severe for securities of issuers in emerging market regionsA. non-diversified Fund may invest a greater percentage of its assets in securities of a single issuer, and/or invest in a relatively small number of issuers, it is more susceptible to risks associated with a single economic, political or regulatory occurrence than a more diversified portfolio.

Investing involves risk, principal loss is possible. Unlike mutual funds, ETFs may trade at a premium or discount to their net asset value. The ETF is new and has limited operating history to judge.

The views expressed herein are those of Harbor Capital Advisors, Inc. investment professionals. They may not be reflective of current opinions, are subject to change without prior notice, and should not be considered investment advice.

Westfield Capital Management, L.P. is the subadvisor for the The Harbor Dividend Growth Leaders ETF.



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Harbor Funds Distributors, Inc. is the Distributor of the Harbor Mutual Funds.
Foreside Fund Services, LLC is the Distributor of the Harbor ETFs.
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Investing involves risk and the potential loss of capital.

Investors should carefully consider the investment objectives, risks, charges and expenses of a fund before investing. To obtain a summary prospectus or prospectus for this and other information, click here or call 800-422-1050. Read it carefully before investing.

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