Insight

Enhance Outcomes with AI and Machine Learning

We explain how artificial intelligence can be used to improve an equity income portfolio’s stability by gauging sentiment around company dividend policy.

An abstract image of a network of lines.

2/21/2024

4 min read


Topic

Systematic Research

Key takeaways

  • We use AI in our efforts to improve investment outcomes. Here, we discuss using it to improve an equity income portfolio’s stability by gauging sentiment on company dividends.
  • Our research shows that positive sentiment before a firm’s dividend announcement raises the likelihood of dividend/price improvement—and vice versa for negative sentiment.
  • AI tools like this one, which processes over 30,000 news articles/day, turn an insurmountable task for an investment team into a manageable one with easily digestible output.
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