The record dividend payouts, which hit $351 billion last year, is beginning to slow, with S&P projecting U.S. dividend growth to run behind the 10% pace of the previous three years, reports Eric Rosenbaum for CNBC.
Investors would do well to focus on large-cap dividend payers which have a greater chance of paying a steady yield – according to S&P data, 84% of large-cap stocks offered dividends, compared to 46% of small-cap stocks. Smaller stocks have increased dividends recently, but these same companies were at greater risk of declining.
Another option to consider is the WisdomTree Equity Income Fund (NYSEArca: DHS), which tracks the WisdomTree Equity Income Index, which includes the highest-yielding 30% companies taken from all dividend-paying U.S. stocks that meet minimum size and liquidity requirements. Unlike other dividend ETFs, components are weighted by their total cash dividends projected to pay in the coming year. The fund has a 2.99% 12-month yield.
ProShares S&P 500 Aristocrats ETF
