Dylan Grice, Societe Generale’s eloquent investment strategist and author of the Popular Delusions note, just introduced his “Quality Income Index.”
His thesis is pretty straightforward: Invest in high quality companies with sustainable dividends.
Here’s one of the key charts from his report. It shows how dividends are the most important component of total equity returns.
“The following chart shows that since 1970, dividends and dividend growth have been pretty much the whole story,” wrote Grice.