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Is Dividend Investing Dead?

Published Thu, 14 Jun 2018 11:40:35 -0400 on Seeking Alpha

Numerous studies have indicated that dividend paying stocks perform better over the long term than stocks that don’t pay dividends. However, that is a small consolation for investors that have suffered capital losses on their high yield dividend payers over the past 18 months. We consider the current environment and suggest a course of action.
Tough going for the dividend favourites Despite the stellar longer-term performance of dividend-based investment strategies, the dividend favourites have struggled over the past 18 months in the U.S. and other major markets.
Index
Total Return YTD
Total Return since 1 Jan 2017
SPDR S&P Dividend ETF (SDY)
0.2%
23.1%
Vanguard High Dividend Yield ETF (VYM)
1.3%
17.9%
Utilities Select SPDR ETF (XLU)
-6.4%
4.7%
iShares US Telecoms ETF (IYZ)
-7.8%
-15.9%
S&P500 Index
5.1%
28.1%

Source: Reuters; priced on 11 June 2018
The table indicates the lagging short term performance of various ETFs that hold the typical investor dividend paying favourites. We compare that to the broader U.S. market on a total return basis (capital appreciation plus dividend income).
Total returns vary among the various strategies represented by the ETFs in the table; however, it is clear that stocks selected for income, underperformed the broader U.S. market considerably over the past 18 months.
Higher interest rates create alternatives for income seeking investors... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
SPDR S&P DIVIDEND ETF 100.02   0.0 0.00 1.81 1.82

SPDR S&P DIVIDEND ETF - SDY
SPDR S&P DIVIDEND ETF - SDY  


Older articles featuring Spdr S&p Dividend Etf (SDY):
Dividend-Focused ETFs: How They Performed In Bull And Bear Markets
Can Dividend ETFs Provide Investors With An Annually Increasing Stream Of Income?
Dividend ETFs Are Back! A Look At 9 Outperformers And Where They Could Be Headed From Here
Searching For Big Juicy Dividends In The USA.
My K.I.S.S. Dividend Growth Portfolio: 2nd Quarter 2018 Update
The Naked Truth On These High Dividend ETFs
Dividend Growth: The SPDR Dividend ETF Is One Of Many Ideas
Admit It: You Know Nothing About The Dividend
My K.I.S.S. Dividend Portfolio: 4th Quarter 2017 Update
How Did Those Big Juicy Dividends That Beat The Market Hold Up In The Last Recession

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