Epoch: Growing dividends are the key as interest rates rise

There are not too many investors out there feeling upbeat about the prospect of higher interest rates. For John Tobin, Managing Director and Portfolio Manager at Epoch Investment Partners, the rising interest rate environment has proven to be a catalyst for outperformance when many equity portfolios have taken a hit. The key, according to Tobin, is Epoch’s focus on a subset of companies with the ability to increase their dividends through the cycle.

“We’re focused on finding companies with growing cash flows that support growing dividends. So those are not bond proxies, and those are companies that will be able to grow dividends over time.”

I recently spoke with John, who is based in New York, to get his perspective on the current investment climate and its impact on income-focused investors. 

Click on the player below to watch the interview.

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