Dividend-News

Beating The S&P With Quality Dividend Stocks - November Update

Published Wed, 23 Dec 2020 00:39:27 -0500 on Seeking Alpha

Seeking AlphaDividend Quick PicksBeating The S&P With Quality Dividend Stocks - November UpdateDec. 23, 2020 12:39 AM ET|| Includes: ACN, ADP, BK, BLK, CMCSA, COST, DPZ, FAST, FDS, GGG, HD, INTU, JKHY, LMT, LOW, MA, MCO, MSCI, MSFT, NOC, NTRS, ROP, TROW, USB, V, WSTby: Dividend Yield TheoristDividend Yield Theorist Dividend Investing, Dividend Growth InvestingSummaryLast month the S&P 500 recorded its third-highest single month total return in the last 33 years.
The Quality Dividend Stock Portfolio was up 10.07% for the month of November.
The portfolio is trailing its benchmark by 82 basis points with one month to go this year.
Market Review for November
November was an outstanding month to be invested in the market. The S&P 500 total return was up 10.95%, outpacing its long-term average annual return in a single month. Since 1988, the index has averaged roughly a 9.9% annualized return. It may not seem like a rare occurrence to have a double-digit single month return seeing how this is the second time it occurred this year, but in reality, it is extremely rare. The last time we experienced a double-digit single month total return was April of 2020, the S&P 500 was up 12.82%. Coincidentally, that was also the best single month total return for the S&P 500 since 1988. But aside from April and November of this year the S&P 500 total return has only had two more double-digit total return months. The most recent occurrence, prior to 2020, was October of 2011, the index was up 10.93%. Prior to that, in December of 1991 the index was up 11.44%. This means that November of 2020 was the third-best month for the S&P 500 total return in the last almost 33 years. Of course, the S&P 500 index has been around longer than 33 years. However, historical data before 1988 uses a different method for dividend reinvestment.
Portfolio Composition Recap
Quality stocks are identified by meeting the following 9 criteria that I found have... Read more