Volatile U.S. markets boost appeal of dividend stocks

Often overlooked in favour of trendy growth names prior to the recent spike in consumer prices, the appeal of dividend payers has increased this year, as an aggressive Federal Reserve and inflation worries combine to batter stocks and bonds.

Overall, the S&P 500 is expected to post another quarterly dividend payment record over the third quarter, driven in part by increasing payouts from energy companies, after increasing 2.3% to $16.63 per share in the second quarter, data from S&P Dow Jones Indices showed. As “cash grows more valuable amid Fed hiking, we expect dividend yield and bird-in-the-hand strategies to continue to outperform” in the second half of the year, BofA strategists wrote earlier this month.

Not all investors are convinced that dividends are the best source of income. Strategists at BlackRock, the world’s largest asset manager, said in a webinar on Monday that they are focusing on short-term and investment grade credit over the second half of the year, given the rising chances of a recession.

The S&P 500 index pays a dividend yield of 1.52% overall, while some well-known dividend payers like materials company Amcor Plc – the largest weighting in the S&P 500 Dividend Aristocrats Index – pays dividend yields of 3.81%, compared with the 2.90% yield of the benchmark 10-year Treasury.

Россия Последние новости, Россия Последние новости

Similar News:Вы также можете прочитать подобные новости, которые мы собрали из других источников новостей

Recession fears outweigh the lure of cheap U.S. bank stocksInvestors are bracing for a fresh slide in banking stocks, with fears of a hit from a potential recession outweighing the lure of relatively cheap valuations In 2016 Cda ratified TPP [and Harper supported it as well] and the only LDR in the free world who was against TPP and removed US from it, was DJT.. When times are good and credit risks perceived low, regulators allow banks to hold little capital (equity), pay big dividends & bonuses, do stock buybacks and so, when times get rough, banks will stand there naked, just when we need them the most
Источник: globeandmail - 🏆 5. / 92 Прочитайте больше »

Tech stocks drag on TSX ahead of BoC decision this week - BNN BloombergTech stocks led a broad-based decline on the TSX on Monday as investors looked ahead to a Bank of Canada interest rate decision and U.S. inflation data later this week.
Источник: BNNBloomberg - 🏆 83. / 50 Прочитайте больше »

U.S. equity futures drop with stocks; Twitter slumps - BNN BloombergUS equity futures dropped along with European stocks Monday as traders await the key second-quarter earnings season for indications on how companies are weathering the inflation storm
Источник: BNNBloomberg - 🏆 83. / 50 Прочитайте больше »