High dividend strategies like the ALPS Sector Dividend Dogs ETF (SDOG) are back in style, and the value resurgence and low interest rates are just two reasons why. SDOG tries to reflect the performance of the S-Network Sector Dividend Dogs Index, which applies the “Dogs of the Dow Theory” on a sector-by-sector basis using the S&P 500 with a focus on high dividend exposure. SDOG’s equal-weight methodology is important because it reduces sector-level risk and dependence of some groups that are considered to be imperiled value ideas.
History shows that after high dividend stocks lag the broader market by wide margins, as was the case last year, they often enjoy long subsequent periods of outperformance.“High dividend stocks lagged the S&P 500 by 30%. This trend began well before 2020, with valuations on dividend stocks cheapening over the past four years while broad equities appreciated,” according to BlackRock research. “While history won’t necessarily repeat itself, the last time we saw this big of a performance differential was in 1999. Thereafter, dividend stocks outperformed equities for the next seven years.”
Source: ETF Trends
Related Articles:
With Dividends Back in Style, This Dog Could Have Its Day
Posted by D4L | Tuesday, March 23, 2021 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
The best dividend stocks have one thing in common: resiliency. They can continue increasing their dividends even in the harshest economic en...
-
Investors wanting to enjoy steady and consistent income should consider dividend aristocrats. In fact, even in these chaotic times, dividend...
-
Dividends and diversification -- those two things can help you achieve a comfortable retirement when combined with the income you will recei...
-
Higher dividend yields often imply that the underlying company paying the dividend has a higher risk profile. However, that's not always...
-
It's hard to beat a sustainable, high-yield dividend paired with a beaten-down valuation. The best dividend stocks offer high yields and...
-
Strange but true: seniors fear death less than running out of money in retirement. And unfortunately, even retirees who have built a nest eg...
-
When hunting for discounted investments, one excellent starting point is to look for businesses with dividend yields trading above their fiv...
-
BDCs can be excellent investment options for those seeking high returns, particularly when acquired at favorable valuations and supported by...
-
How high is too high when it comes to dividend stocks? Of course, every income investor wants as much yield as possible. However, they also ...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.