Red Hot Dividend ETFs Of 2019
Zacks Investment Research | Jul 29, 2019 10:55PM ET
With rate cuts in the cards and lower bond yields, the appeal for dividend ETFs has been on a rise this year on investors’ drive for juicy yields.
Though these stocks do not offer much price appreciation in a rising stock market, they offer a steady stream of income along with the potential of capital gains. Dividend-focused products offer safety in the form of payouts and stability in the form of mature companies that are less volatile to large swings in stock prices.
Dividend paying securities are the major sources of consistent income for investors to create wealth when returns from the equity market are at risk. The companies that pay out dividends generally act as a hedge against economic uncertainty and provide downside protection by offering outsized payouts or sizable yields on a regular basis.
Further, research shows that dividend stocks often outperform their non-dividend paying counterparts over longer periods. According to Chicago-based Greenrock Research, a portfolio with the top 20% S&P 500 companies ranked by dividend yield and weighted by market capitalization, outperformed the overall S&P 500 by Original post
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