August: Another bad month for dividend stocks
The average stock in the S&P 500 gained just over 3% in August. But there was a pretty big discrepency in performance between high yielders and low or no yielders. Below we have broken the S&P 500 into deciles (10 groups of 50 stocks each) based on dividend yield. We then calculated the average performance of the stocks in each decile during the month of August. As shown, the decile of the highest yielding S&P 500 stocks rose an average of just 0.62% in August. Conversely, S&P 500 stocks that pay no dividend rose an average of 5.45%! A few months ago, investors couldn't get enough of high dividend payers. Now they want nothing to do with them.
If you want to talk about how potential market events or the fiscal cliff might affect your equity portfolio, and perhaps talk about whether some of our defensive-minded investment strategies might be right for you, write Multiplywealth at email@example.com It’s your own account; you can see the balance change on a daily basis, make investment changes extremely quickly, and add to or pull your money at your complete discretion.