Wall Street Week Ahead: Spotlight falls on 'dividend aristocrats' after market tumult

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Companies across a range of industries are slashing or suspending dividends to cope with the economic fallout from the coronavirus outbreak, complicating the stock selection process for money managers eager to buttress their portfolios with a steady stream of income.

The S&P 500 dividend aristocrats index .SPDAUDT, which tracks companies that have increased dividends annually for the past 25 years and includes Exxon and Chevron, has fallen about 19% so far in 2020 as of Thursday, greater than the 12.9% drop over that time for the S&P 500 total return index .SPXTR.

That’s bad news for yield-thirsty investors at a time when payouts on U.S Treasuries stand near historic lows as the Federal Reserve keeps interest rates in check to stimulate the economy. The S&P 500’s dividend yield recently exceeded the yield on the benchmark 10-year U.S. Treasury US10YT=RR by its highest margin in nearly five decades.

“In times like these, financial strength and dividends are two of the critical components in making your investment selections,” said Alan Lancz, president of investment advisory firm Alan B. Lancz & Associates Inc. “It’s not just the dividend yield, but the sustainability of that dividend.”

 

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just a side note stop announcing shit forward

Eat the rich.

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