What will it take for dividend payers to rebound in the second half?
Over the past 20+ years, NDR Chief U.S. Market Strategist Ed Clissold has done significant research on the topic of dividends and developed several evaluation and screening tools to enhance dividend stock selection processes. He has also created several charts and tables that our clients find helpful when articulating the benefits of various dividend strategies.
In his latest publication, he reviewed the reasons why “Dividend Payers are on track for their worst first half vs NonPayers since 2009” and outlined what to watch for signs of a recovery. The short answer is that FANMAG stocks need to fall out of favor. A moderation of the stock market uptrend, a worsening economic outlook, and continued Fed tightening should benefit low-beta Dividend Payers. While these conditions are not in place today, they could develop later in the year. - Susan Corcoran, Senior Product Specialist