Additionally, XLP offers a decent dividend payout of 2.67%, compared with 2% for the iShares S&P 500 (NYSEArca: IVV).
Paul Atkinson, Aberdeen Asset management’s head of North American equities, points to the balance sheets of a number of defensive blue-chip firms are the strongest they have been in 50 years, reports Kyle Caldwell for Investment Week. Consequently, Atkinson believes this will result in higher dividend growth over the next couple of years.
“Over the last six to 12 months there has been a realization that U.S. companies have got an enormous amount of cash on their balance sheets, which will result in higher dividend growth over the short and long term,” Atkinson said in the article.
For more information on the consume staples sector, visit our consumer staples category.
Max Chen contributed to this article.