Dividend-News

Daily dividend news for investors in dividend stocks


Why Consider A Dividend Growth ETF Strategy In Today's Market

Published Fri, 10 Jul 2020 20:04:44 -0400 on Seeking Alpha

Seeking AlphaETF AnalysisWhy Consider A Dividend Growth ETF Strategy In Today's MarketJul. 10, 2020 8:04 PM ET|| Includes: EFAD, EMDV, EUDV, NOBL, REGL, SMDV, TDV, TMDVby: Tom LydonTom Lydon ETF investing, oil & gas, gold & precious metals, alternative energyETF Trends.cls-1{fill:#024999;}SummaryExchange-traded fund investors should look to companies with a history of growing dividend payouts as their ability to endure in challenging markets may make dividend growth strategies advantageous in today's environment.
Steady dividend payouts have also helped produce improved risk-adjusted returns over time.
The improved risk-adjusted returns over time are also found in the smaller segments of the companies with a consistent history of growing dividends.
Exchange-traded fund investors should look to companies with a history of growing dividend payouts as their ability to endure in challenging markets may make dividend growth strategies advantageous in today's environment.
In the recent webcast, The Dividend Growth Advantage: Strategies for Today's Markets, Craig Lazzara, Managing Director, Global Head of Index Investment Strategy, S&P Dow Jones Indices, pointed out that since 1936, reinvested dividends have contributed 38% of the total equity return of the S&P 500.
"Sustainable dividend income has been an important factor in total equity returns," Lazzara said.
Simeon Hyman, Global Investment Strategist, ProShares, also pointed out that dividend-growing companies are also high quality names. He pointed out that a company's credit rating provides a convenient composite measure of quality. Only one-fifth as many dividend cutters and eliminators have come from the top quintile of the S&P 500 by credit rating, while nearly five times that number have come from the bottom quintile.
A similar picture appears when sorting by dividend yield: companies in the highest quintile of dividend yield - those whose ability to pay may become... Read more