Skip to main content

February 13, 2024

Take a Wise Approach to Dividend Investing

Markets have always been volatile, but these days volatility runs extremely high. We’ve endured a lengthy global pandemic, escalating geopolitical conflict and rising inflation that has led to soaring interest rates and worldwide economic challenges.

Faced with such difficult conditions, many people have become nervous about investing. While there’s no magic formula for people to invest without risk while achieving their wealth-building goals, some investment strategies are able to check more boxes than others.

A better approach to core investing

For instance, consider CI’s quality dividend growth solutions as a core portfolio component. For years, these products have helped investors reach their financial objectives with a disciplined and diversified approach to dividend investing. This approach, which comprehensively evaluates a company’s fundamental characteristics, is applied to Canadian, U.S. and international markets, giving investors a core Multifactor product with the ability to diversify geographically according to their portfolio needs.

Multifactor approach to core

Icon representing Quality


High quality companies may be able to generate excess returns versus the market in the long run

Icon representing Dividend


Rising yield environment necessitates the need and importance of dividend investing

Icon representing Growth


Companies that can grow their earnings have the greatest potential to raise their dividends

Today, there’s a new way for investors to access this rules-based quality dividend growth methodology. CI has a broad shelf of innovative ETF solutions and now the popular Quality Dividend Growth suite is also available in the familiar mutual fund structure. Introducing our suite of CI Quality Dividend Growth mutual funds:

Before discussing the specific benefits of these new mutual funds, let’s explore the three key factors underpinning the multi-factor strategy: quality, dividends and growth.

Quality factor

This factor targets operating profitability, often using “return on equity” (ROE) to measure quality. However, it’s an imperfect metric on its own since companies can take on more leverage to increase their ROE, which may also lead to more risk. The Quality Dividend Growth strategy corrects for this by considering “return on assets” in tandem with ROE to better assess the robustness of a company’s profitability. Quality companies tend to be more resilient when the economic environment weakens and market volatility rises.

Dividend factor

Dividend payers tend to profile as reasonably stable and profitable. This factor often uses backward-looking screens to help measure the sustainability of a company’s dividends. However, focusing only on historical data may exclude companies newer to paying dividends, or those poised to capitalize on a significant emerging trend. Our strategy addresses this issue by being forward looking, identifying companies that appear capable of maintaining their dividends while also showing dividend growth potential.

Growth factor

An effective way to determine dividend growth potential is to analyze a company’s earnings. This factor considers a number of operational data points through forward looking earnings growth estimates. The screen provides a dynamic metric to stay on top of trends and selects companies best equipped to grow their dividends.

Key benefits

CI Quality Dividend Growth’s focused, multi-factor approach provides targeted exposure to a given market – be it Canada, the U.S. or international – and captures growth potential for earnings and dividends. Within a specific market, each corresponding solution offers broad exposure to high-quality dividend growers in various industries and sectors, adding valuable diversification benefits (such as the potential for enhanced returns with lower overall risk) to an investment portfolio.

Each of our three new mutual funds leverages the same unique methodology that has made CI WisdomTree Quality Dividend Growth ETFs popular among advisors and investors alike. With these mandates now available as mutual funds, it empowers many advisors to expand their product universe when constructing robust portfolios for their clients. Also, since these funds are designed to be a core part of a diversified investment portfolio, advisors can help clients stay disciplined, focus on their long-term investment strategy and forgo the emotions in volatile times that may lead to poor investment decisions.

Learn more about the CI WisdomTree Quality Dividend Growth Index suite here.

About the Author

Blake Verdonk

Blake Verdonk

ETF Consultant, ETF Strategy
CI Global Asset Management

Blake Verdonk is an ETF Consultant at CI GAM and is responsible for helping grow the ETF business by executing the ETF sales strategy as well as supporting the ETF sales team. Blake graduated from the Ivey Business School at Western University with a degree in Honours Business Administration.


Commissions, trailing commissions, management fees and expenses all may be associated with an investment in mutual funds and exchange-traded funds (ETFs). Please read the prospectus before investing. In case of Money Market Funds note that mutual fund securities are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer. Important information about mutual funds and ETFs is contained in their respective prospectus. Mutual funds and ETFs are not guaranteed; their values change frequently, and past performance may not be repeated. You will usually pay brokerage fees to your dealer if you purchase or sell units of an ETF on recognized Canadian exchanges. If the units are purchased or sold on these Canadian exchanges, investors may pay more than the current net asset value when buying units of the ETF and may receive less than the current net asset value when selling them. Returns of the Index do not represent the ETF’s returns. An investor cannot invest directly in the Index. Performance of the ETF is expected to be lower than the performance of the Index.

CI Global Asset Management is licensed by WisdomTree Inc. to use certain WisdomTree indexes (the “WisdomTree Indexes”) and WisdomTree marks. 

“WisdomTree®” and “Variably Hedged®” are registered trademarks of WisdomTree  Inc. and WisdomTree  Inc. has patent applications pending on the methodology and operation of its indexes. The mutual funds referring to such indexes (the “WT Licensee Products”) are not sponsored, endorsed, sold, or promoted by WisdomTree Inc., or its affiliates ("WisdomTree"). WisdomTree makes no representation or warranty, express or implied, and shall have no liability regarding the advisability, legality (including the accuracy or adequacy of descriptions and disclosures relating to the WT Licensee Products) or suitability of investing in or purchasing securities or other financial instruments or products generally, or of the WT Licensee Products in particular (including, without limitation, the failure of the WT Licensee Products to achieve their investment objectives) or regarding use of such indexes or any data included therein. 

This communication is published by CI Global Asset Management (“CI GAM”). Any commentaries and information contained in this communication are provided as a general source of information and should not be considered personal investment advice. Facts and data provided by CI GAM and other sources are believed to be reliable as at the date of publication. Certain statements contained in this communication are based in whole or in part on information provided by third parties and CI GAM has taken reasonable steps to ensure their accuracy. Market conditions may change which may impact the information contained in this document. Information in this communication is not intended to provide legal, accounting, investment or tax advice, and should not be relied upon in that regard. Professional advisors should be consulted prior to acting based on the information contained in this communication. You may not modify, copy, reproduce, publish, upload, post, transmit, distribute, or commercially exploit in any way any content included in this communication. You may download this communication for your activities as a financial advisor provided you keep intact all copyright and other proprietary notices. Unauthorized downloading, re-transmission, storage in any medium, copying, redistribution, or republication for any purpose is strictly prohibited without the written permission of CI GAM.