Dividend Growth as Defense in a Narrow Market

U.S. equity markets remain historically concentrated, with a small group of mega-cap companies driving a disproportionate share of index returns. While that dynamic has rewarded investors in recent years, it has also raised important questions about diversification, downside risk and long-term portfolio resilience.

In a Q&A with Connect Money, Managing Director and Portfolio Manager Nick Puncer shared how advisors addressing concentration risk can consider dividend growth strategies while still targeting competitive long-term returns. The conversation explored the risks associated with concentrated markets, the limitations of equal-weight approaches and why dividend growth may offer a balanced path between income, growth and volatility management.