Dividend ETFs

Dividend-yielding stocks are paying off now


Dividend stocks have been attracting investors for several years because of low yields on fixed-income instruments. Now their appeal is broadening as investors assume defensive postures, accelerating dividend-paying vehicles into outperformance. Dividend payouts provide a downside price cushion, the theory goes, though of course the threat of dividend cuts could exacerbate any decline. But a repeat of that debacle is unlikely, at least this year. Another characteristic of dividend stocks is that they tend to belong to more mature, more established companies that are big enough to weather temporary turbulence. This latest round of investor concern about the pace and strength of global economic recovery has taken growth and small stocks out of favor.
Comment: Of the above, I like PEY. Holdings

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