WBI believes portfolios should be designed to generate returns from interest and dividend cash flows as well as from price appreciation. Dividends can provide returns that are not dependent upon advancing prices, which can bolster portfolio performance during bear market cycles. The reinvestment of dividends unleashes two powerful forces that can be used to help build wealth: compounding and dollar cost averaging. Compounding builds shares as dividends are reinvested to buy more shares each quarter. Dollar cost averaging is the practice of systematically investing money (reinvested dividends), usually monthly or quarterly, over a long period of time. This can lead to lowering the average purchase price of shares as stock prices fluctuate. (Please see the Important Information section for a discussion of the risks of dividend investing and dollar cost averaging.)
1Analysis by WBI Investments with data provided by Global Financial Data
Dow Jones Industrial Average Index (DJIA)
Period from January 1, 1947 to December 31, 2011
WBI's research1 highlights the dramatic benefits that dividend compounding has provided, and insight into the potential shortcomings of more conventional growth focused investment approaches.
According to this research, a hypothetical $10,000 invested on January 1, 1947 in an investment that performed similarly to the DJIA would have grown from price appreciation to $689,479 by the end of 2011. Over the same time period, $10,000 invested with dividends reinvested would have increased in value to $7,007,862.
Past performance does not guarantee future performance. This hypothetical illustration is not indicative of any WBI S.M.A. portfolio returns. To obtain current portfolio performance click here.
Past performance does not guarantee future results.
The WBI Dynamic Trailing Stop (DTS) is not a stop loss order or stop limit order placed with a brokerage firm, but an internal process for monitoring price movements. While the DTS may be used to initiate WBI's process for selling a security, it does not assure that a particular execution price will be received.
Although a company may pay a dividend, prices of equity securities - including those that pay dividends - fluctuate. Investing on the basis of dividends alone may cause an investor to buy or sell certain securities when circumstances may or may not be favorable.
Because dollar cost averaging involves continuous periodic investment in securities regardless of fluctuating price levels of such securities, investors planning to pursue this strategy should consider their ability to continue purchases through periods of low price levels. Dollar cost averaging does not assure a profit, and does not protect against loss in declining markets.
All performance information is historical and not indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this document, will be profitable, equal any corresponding indicated historical performance level(s), or be suitable for your portfolio. Any investment strategy involves risk, including the possible loss of principal invested. Moreover, you should not assume that any discussion or information provided here serves as the receipt of, or as a substitute for, personalized investment advice All information, including that used to compile charts, is obtained from sources believed to be reliable, but WBI Investments™ does not guarantee its reliability.
The Dow Jones Industrial Average is a price-weighted average of 30 of the largest blue chip issues traded on the New York Stock Exchange.
The S&P 500 Index includes a representative sample of large-cap U.S. companies in leading industries.
The NASDAQ Composite Index (NASDAQ) is a market-value weighted index of all common stocks listed on NASDAQ.
You cannot invest directly in an index.