High-yield sectors, particularly Utilities and Real Estate, have outperformed due to a sharp drop in Treasury yields, making high-dividend equities more attractive. The Global X SuperDividend U.S. ETF has shown strong performance since early July, with a 13% return since February, driven by lower interest rates. DIV offers access to 50 high dividend-paying equities, with a low valuation, solid momentum, and a high forward dividend yield of 6.19%.
The S&P 500 and the Nasdaq Composite declined for a second straight session in a lackluster start to September. A lackluster manufacturing report for the U.S. economy and the tech selloff mainly led to the slump.
A global gauge of stocks hit a record high on Fed rate cut hopes. But volatility may remain high on global growth slowdown, boosting the appeal for dividend ETFs.
Given the current market volatility on Wall Street, the best dividend stocks look increasingly appealing to investors seeking stable income. The recent tech correction, which began in mid July due to valuation concerns, triggered panic selling in early August.
High-dividend ETFs have the potential to offer capital appreciation as well as benchmark-beating yields (some times).
The Global X SuperDividend U.S. ETF (DIV) was launched on 03/11/2013, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - All Cap Value category of the market.
Global X SuperDividend® U.S. ETF (DIV) seeks to replicate the performance of 50 large dividend-paying US stocks with lower volatility. DIV's sector composition includes high-yielding sectors like energy, REITs, and Utilities, offering exposure to potential multi-year leadership cycles. While DIV has underperformed compared to peers, its current yield of 6.93% and monthly distribution schedule make it appealing for income-seeking investors.
Finding high-yield stocks with low balance sheet and dividend cut risk and the prospect of inflation-beating growth is becoming increasingly difficult in the current stock market. We discuss some 8-9% yielding opportunities that fit these criteria. We detail what makes them attractive opportunities at the moment.