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. An abstract image of a network of lines.](/globalassets/assets/insights/hero/enhance-outcomes-with-ai-and-machine-learning-725x385.jpg)
Authors
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Sophie Careford, CFA
- Eddie Cheng, CFA
- Vince Fioramonti, CFA
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.