Here is a look at how different equity sectors have historically performed when interest rates are falling.

Real estate, infrastructure, and dividend growth stocks have historically outperformed post rate-hike cycles. All three can provide investors with tax-efficient, rising cash flow streams at a time when yields from GICs, short term bonds and HISAs are declining.

Dividend Growers After FOMC Rate Hike Cycles
Subsets of S&P 500, All Rate Hikes Since 1972

Starlight Dividend Growth Class
Series F: SLC517

• Monthly Income
• Target 10%+ Annual Dividend Growth
• Actively Managed Total Return Fund

Important disclaimer.


This article is intended to provide general insights about potential impacts of lower interest rates on various sectors. It is not a substitute for individualized investment advice. Past performance is not necessarily indicative of future results, and investment performance can vary within a given sector and industry.

The views in this update are subject to change at any time based upon market or other conditions and are current as of July 24, 2024. While all material is deemed to be reliable, accuracy and completeness cannot be guaranteed.

Certain statements in this document are forward-looking. Forward-looking statements (“FLS”) are statements that are predictive in nature, depend upon or refer to future events or conditions, or that include words such as “may,” “will,” “should,” “could,” “expect,” “anticipate,” “intend,” “plan,” “believe,” or “estimate,” or other similar expressions. Statements that look forward in time or include anything other than historical information are subject to risks and uncertainties, and actual results, actions or events could differ materially from those set forth in the FLS. FLS are not guarantees of future performance and are by their nature based on numerous assumptions. Although the FLS contained herein are based upon what Starlight Capital and the portfolio manager believe to be reasonable assumptions, neither Starlight Capital nor the portfolio manager can assure that actual results will be consistent with these FLS. The reader is cautioned to consider the FLS carefully and not to place undue reliance on FLS. Unless required by applicable law, it is not undertaken, and specifically disclaimed that there is any intention or obligation to update or revise FLS, whether as a result of new information, future events or otherwise. Commissions, trailing commissions, management fees and expenses all may be associated with investment funds. Please read the prospectus before investing. Investment funds are not guaranteed, their values change frequently, and past performance may not be repeated.

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