Stocks are approaching a clear test after investors were left in the fog of a government shutdown this month and rattled by fresh tariff fears Friday.
Fourteen of the highest-yielding, 'safer' S&P 500 dividend stocks are currently attractively priced, with free cash flow supporting their payouts. Top ten S&P 500 dividend 'dogs' are projected to deliver 23.93% to 38.57% net gains by October 2026, based on analyst targets. Stocks like CAG, VZ, DOC, BMY, KVUE, CPB, UDR, VTRS, KIM, TFC, KEY, HPQ, T, and RF meet the ideal of dividends from $1K invested exceeding share price.
The S&P 500 notched two new record highs this week before experiencing its largest daily loss in six months. The index sank -2.7% on Friday, ultimately leading to a weekly loss of -2.4%.
The quarterly bump hit the earnings data this week as the new forward 4-quarter estimate for the S&P 500 rolled into the four quarters from Q4 '25 to Q3 '26. The S&P 500 earnings yield bounced a little this week despite the rally, as the $10 increase in the FFQE improved the S&P 500 earnings yield from 4.26% last week to 4.37% this week. While I'd like to see the S&P 500 earnings yield higher - at least in the 4.75% to 5% area - the persistent and healthy increases in the S&P 500 earnings is providing a floor for the S&P 500.
Investors often view the stock market as a representation of the broader economy. But that's not entirely true.
The S&P 500 finished the week on a six-day win streak, notching three consecutive record highs to close out the week. The index ultimately posted a weekly gain of 1.1%, its fourth in the past five weeks.
Sectors in the U.S. stock market just traded in a way that suggests investors are excessively confident and a pullback may be near, according to DataTrek Research.
Market volatility is rising but buy-and-hold ETFs like SPY, VOO and VTI offer investors diversification and long-term resilience.
A strategy of growing dividend income over time might be better than focusing on high current yields.
The S&P 500 (SPX) is positioned for continued gains, supported by strong technical trends above key moving averages on both monthly and weekly charts. Seasonal data favors a bullish outlook, as October through January have historically delivered positive returns and strong market performance. Fundamental tailwinds include recent and expected Fed interest rate cuts, rising consumer spending, and robust corporate earnings growth forecasts for Q3.
Global chip stocks rally
U.S. Q2 GDP grows at fastest pace in two years, fueled by consumer spending and business investment, boosting ETF opportunities.