Don’t be the one who misses the boat on DIVIDEND RELIGION. Investors are finding out now what Your Survival Guy has known for a long time, there is something special about dividend paying stocks. The Wall Street Journal’s Hardika Singh and Michael Wursthorn report:
Boring companies have been hot during the stock market’s winter swoon.
An early-year tumble in major U.S. stock indexes has some investors searching for safety by dumping shares of high-growth technology stocks for stodgier businesses that pay shareholders cash, including banks, oil companies and telecoms.
Through Feb. 4, the S&P 500 High Yield Dividend Index—made up of the S&P 500’s top 80 dividend-paying companies—was up 2.1% including dividends, compared with a negative total return of 5.5% for the broad benchmark through Friday. The average dividend-paying stock in the S&P 500 rose by 6.6 percentage points more than nonpayers in January, the biggest margin favoring payers in 17 years, according to S&P Dow Jones Indices.
Rising inflation and the prospect of the first interest-rate increases by the Federal Reserve in more than three years has raised questions about the economy’s durability. Income-generating stocks are seen as a safe harbor from those worries, analysts said, while once-highflying stocks, including some tech behemoths’ shares, have been laid low as investors try to select tomorrow’s winners and losers.
Sandy Villere, a portfolio manager at wealth management firm Villere & Co., which manages $2.4 billion in equity and fixed-income strategies, said he has bought clients more shares of Chevron Corp. , as well as consumer products company Newell Brands Inc. and PepsiCo Inc. , this year. Newell, which has a nearly 4.2% dividend yield, is up 0.6% so far this year, while PepsiCo has a 2.5% payout and has fallen 1.1%. Chevron has a 3.8% dividend yield; its shares are up 18%.
“In this environment, a good place to hide would be some of these dividend-oriented companies that are going to grind through this market turbulence,” said Mr. Villere.
Action Line: I want to prepare you and your family for success with personal and financial security. If you need motivation and encouragement to achieve success for your family, click here to subscribe to my monthly Survive & Thrive letter. I’ll help you get serious about success.
E.J. Smith - Your Survival Guy
Latest posts by E.J. Smith - Your Survival Guy (see all)
- Your Survival Guy in Paris: The Greatest Cafés - October 14, 2024
- ROGUE BUREAUCRATS: Trump Declares War on the Deep State - October 14, 2024
- Kamala Harris’s Latest Big Mistake - October 14, 2024
- Your Survival Guy in Paris: Pot of Gold - October 11, 2024
- Harris’s Record of Radicalism - October 11, 2024