Long Term Strategy: Which equity income strategy long-term investors should adopt?

Research evidence excerpt

Long Term Strategy: Which equity income strategy long-term investors should adopt?

J P M O R G A N Global Markets Strategy

14 July 2026

Long Term Strategy

Which equity income strategy long-term investors

should adopt?

• The current regime of “2020–2026 Post-COVID — AI era” has posed a Global Markets Strategy

AC challenge for traditional dividend income funds targeting high dividend yield Mika Inkinen

as they significantly underperformed the broader market. (44-20) 7742 6565

• As a result of this large underperformance, there has been an increased focus mika.j.inkinen@jpmorgan.comJ.P. Morgan Securities plc

on three alternative approaches beyond traditional high dividend yield AC Nikolaos Panigirtzoglou

strategies: (44-20) 7134-7815

nikolaos.panigirtzoglou@jpmorgan.com

• Targeting high dividend growth stocks J.P. Morgan Securities plc

• Targeting high total shareholder yield stocks (i.e. dividend plus buyback Krutik P Mehta

yield) (91-22) 6157-5016

krutik.mehta@jpmchase.com

• Enhancement of equity income strategies via call overwriting i.e., J.P. Morgan India Private Limited

strategies that harvest options income by sacrificing some of the equity Mayur Yeole

upside (91 22) 6157 3872

mayur.yeole@jpmchase.com

• With the AI hype likely to eventually normalise, the regime we are likely to be J.P. Morgan India Private Limited

on over the next ten years is in our opinion more likely to be like the “1963–

1989 Normal business cycle swings” rather than the current “2020–2026 Post-

COVID — AI era” regime.

• This implies that over the long-term, the next ten years or so, asset allocation

should factor in a strong positive correlation between the dividend and the

value factor, a strong negative correlation between the dividend and the