An aging bull market with some concern over elevated valuations. Geopolitical tensions. Normalizing monetary policy. Continued low volatility with strong corporate earnings. With all the competing headwinds and tailwinds, it’s feeling rather blustery on Wall Street. Who knows which direction the markets and exchange traded funds will blow?
On the upcoming webcast (available live and on demand for CE Credit), How Quality Dividend Growers Can Help Fight the Crosswinds on Wall Street, Sam Stovall, Chief Investment Officer for CFRA, and Kieran Kirwan, Director of Investment Strategy for ProShares, will discuss the forecast for Wall Street and look to quality companies that have shown consistent ability to withstand turmoil and pay increasing dividends.
“Companies that consistently grow their dividends tend to be high-quality companies with the potential to withstand market turmoil and can still deliver strong risk-adjusted total returns over time,” according to ProShares. “Companies that cut or suspend a dividend may have cash flow problems or too much debt on the books. Investing in the companies that have not only paid dividends but have consistently grown them over time has historically been an effective way to outperform the market.”
For example, the S&P 500 Dividend Aristocrats Index acts as the underlying index for the popular ProShares S&P 500 Aristocrats ETF (BATS: NOBL) and is comprised of companies that have consecutively raised dividends for at least 25 years. NOBL currently shows a 1.96% 12-month yield, according to Morningstar data.
ProShares also offers the ProShares Russell 2000 Dividend Growers ETF (BATS: SMDV) and the ProShares S&P MidCap 400 Dividend Aristocrats ETF (BATS: REGL) for those seeking quality dividend growers in the small- and mid-cap categories, respectively.