4 Top Dividend Paying Mutual Funds To Buy In September
Zacks Investment Research | Sep 01, 2016 09:55PM ET
September has earned an uncanny reputation of providing low returns, with the S&P 500 and the Dow usually ending in the red. Also, we are into that part of the year when returns have been historically low, while stocks are overvalued. The future is also cast into uncertainty, thanks to the upcoming presidential elections.
Also, weak factory sector data have diminished chances of a rate hike. At this juncture, income seeking investors will look for funds that are exposed to stocks providing handsome dividends. A low interest rate environment is also a boon for dividend paying companies.
September: Historically the Worst
September is an appalling month for the U.S. stock market, as far as historical data is considered. Since 1928, the S&P 500 has tanked almost 56% of the times in September, as per Bank of America Merrill Lynch (NYSE:BAC) data. Similarly, the month has been dismal for the Dow Jones Industrial Average. Since the blue-chip index was created, it has shown an average loss of 1.1% in September; while in all the other 11 months the index posted an average gain of 0.8%.
Furthermore, this terrible September record is not just because of two or three horrible years. On the contrary, stocks have been persistently posting unimpressive performance in September, with the month’s average turning out to be discouraging in all but one of the dozen decades since the late 1800s.
Add to this, the current limited daily movements and low volumes in the broader markets and we all know that there is a correction in the cards (read more: Zacks Investment Research
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