Capital growth and dividends each play an important role in delivering growth in dollar income over time. Capital is what income grows off, along with providing duration to the retirement funding pool well into the future, countering longevity risk.
There are a number of equity income strategies in the market, where objectives largely focus on yield (not dollar income) and largely ignore capital (and total returns). This can often come at the investors expense which we outline further below:
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Market & Portfolio Update: Volatility and Market Uncertainty