These dividend stocks could appeal to risk-averse investors in September
Equities have surged to lofty valuations in the past year
and a half. The S&P 500 index jumped from a low of around 2,200 in March
2020 to more than 4,400 in about 350 trading days, the quickest doubling of the
index in stock market history.
However, the big rally is likely to come to an end. As
investors become increasingly concerned about an inevitable correction around
the corner, September looks to be the right time to reallocate towards reliable
dividend stocks.
Dividend shares add stability to long-term portfolios and
allow income seekers to collect regular cash payments regardless of market
volatility. In fact, metrics highlight that dividend stocks have vastly
outpaced their non-dividend-paying peers over the long run.
Recent research suggests that, “From 1930–2020, dividend
income’s contribution to the total return of the S&P 500 Index averaged
41%… Today, investors continue to place a high premium on the more tangible and
immediate returns that dividends provide.”
JPMorgan Chase (NYSE:JPM) also cites, “… companies that
initiated and grew their dividends posted average annualized total returns of
about 9.5% from 1972 through the end of 2012 compared with 1.6% for non
dividend-paying stocks.”
As we move forward in September, these seven dividend stocks
offer the perfect combination of value, income, and growth potential:
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