Dividend Shares Remain Resilient
Sober Look | Jun 23, 2013 02:29AM ET
As expected, dividend-focused shares have underperformed in this rising rate environment. The chart below shows a couple of broad dividend index ETFs vs the S&P500 (SPY) over the past two months.
On a year-to-date basis, these same shares have performed as well as the broader market. As discussed late last year, dividend shares never exhibited signs of a "crowded trade" and therefore were able to withstand this rate adjustment significantly better than fixed income products.
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