Demand for dividend stocks and exchange traded funds remains robust as investors continue looking for ways to generate income in a low interest rate environment.
A number of factors contribute to the ongoing appeal of investing in dividend ETFs. For instance, dividend payouts provide downside protection or help cushion short-term dips, writes John Prestbo for MarketWatch.
Additionally, investors will find that steady dividend stocks reflect more mature or established companies that are steadfast against temporary swings in the equities market.
“Research has shown that the market does not fully incorporate these beneficial attributes into the prices of quality firms, so high-quality stocks have better risk-adjusted returns over time than lower-quality stocks,” according to Morningstar analyst Abby Woodham.
Dividend plays strengthened in the the recent sell-off in small-caps and growth stocks.
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The D2 Capital Management Multi-Asset Income Portfolio is overweight in dividend funds. Current yield on the portfolio is 5.30% and year to date the portfolio is up 7.91%.Disclosure: I own the D2 Capital Management Multi-Asset Income Portfolio
The views expressed here are that of myself or the cited individual or firm and do not constitute a recommendation, solicitation, or offer by myself, D2 Capital Management, LLC or its affiliates to buy or sell any securities, futures, options or other financial instruments or provide any investment advice or service. D2, its clients, and its employees may or may not own any of the securities (or their derivatives) mentioned in this article.
The Jacksonville Business Journal has ranked D2 Capital Management in the top 25 of Certified Financial Planners in Jacksonville. The Firm is also a member of the Financial Planning Association of Northeast Florida, the Jacksonville Chamber of Commerce, the Southside Businessmen's Club, and the Beaches Business Association.
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