One particular index has been home to the market's very biggest winners of late and will likely remain that home for some time to come. Don't dismiss the long-term upside of reinvesting ever-growing dividend payments.
It's been a strong first half for the S&P 500 as the large-cap index was up 16% year to date as of June 18. This year, the growth style ETFs tied to this benchmark have outperformed most others including dividends and value ones.
Since my last article, the NOBL ETF has underperformed S&P 500 due to tech dominance. Investors should consider reducing exposure to growth funds and investing in stable, high-quality companies like NOBL as market performance is increasingly narrow. Historically, the S&P 500 Dividend Aristocrats Index has outperformed in the long-run by being more resilient in drawdowns.
How do you find the best dividend stocks to buy? Income investors know there's no substitute for regular dividend increases over the long haul.
This article presents my current 40-stock Yield At a Reasonable Price stock portfolio, and explains at a high level how I manage it. These 40 dividend stocks are what I consider to be a combination of quality and yield. I supplement it with call and put options to hedge and enhance return potential. The most unique aspect of this portfolio is my willingness to frequently adjust the stock weights to capture dividends and price gains, and aim to avoid big losses.