High-dividend stocks are starting to outperform as low rates become the new norm again

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As global economic uncertainty has caused interest rates to tumble, high-dividend stocks have started to outperform low-dividend stocks.

, which mimics the performance of the entire S&P. Since last week, the dividend ETF is down 2.9%, while the S&P ETF is down 3.3%.

"Driven by declining yields, high dividend yielding stocks have outperformed low dividend payers since late July," said Evercore ISI's senior managing director Dennis DeBusschere. "Even after the rebound, the relative performance of high vs. low dividend payers remains depressed, suggesting further upside for dividend payers as nominal bond yields remain extremely low yield.

 

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