On Wednesday, two market watchers went searching for value plays at or near their 52-week highs that could benefit from a full-fledged vaccine rollout.
Steve Chiavarone, portfolio manager, equity strategist and vice president at Federated Hermes, had his eye on dividend payers.
Less than 5% off its 52-week high, the Dow Jones Select Dividend Index has been outperforming since Sept. 2, outpacing the S&P 500, large-cap growth, large-cap value and international names in the iShares MSCI EAFE ETF (EFA), Chiavarone told CNBC s Trading Nation on Wednesday. The story here is you get a dividend yield that s north of 4% and on a P/E basis, you re trading at 14.5 times next 12 months earnings, which is a lot cheaper than the market at 22 times, and dividend payers were really hurt by the pandemic, Chiavarone said.