Investors looking to implement low-carbon strategies can do so without affecting their dividend payouts, says AXA Investment Management Rosenberg Equities. Speaking in Sydney yesterday, AXA IM Rosenberg Equities head of sustainable investing Kathryn Mohan McDonald pointed to research conducted by the company that showed high dividend payout did not depend on investing in major polluters. “If I create the same quintile portfolios but without those largest 75 polluters, what would that do to my payout ratios?” Ms McDonald said.
“The fact of the matter is that it does very, very little to the payout profile. “The carbon footprint, for example, is improved by 50 per cent, but as it turns out, it doesn’t really make much of a difference in terms of my ability to find an attractive average dividend payout.” She said contrary to popular belief, a “green focus” would not “interrupt” investors’ search for attractive dividend yield.”
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