After all the dividend cuts our Income Portfolio suffered last year it’s a relief to be able to report an increase – and a substantial one at that. Regional Reit is the holding we have to thank for this welcome news.
It said on Wednesday that it would pay a divi of 1.6p for the first quarter of the year, compared with the 1.5p it paid in each of the last three quarters of 2020. In the first quarter of last year it paid 1.9p but then announced a cut, as we reported in August.
Last year it also abandoned its previous practice of paying more in the final quarter. The result was a total divi of 6.4p for the year to December 2020, a fall of 22.4pc compared with the total of 8.25p paid the year before.
Even with an impressive year-to-date gain of 20.63%, SDOG yields 3.45%, making it a standout on that basis in today’s low-yield environment. More good news for SDOG: high dividend stocks are still attractive on their valuations.
“Michael Fredericks, Head of Income Investing for BlackRock’s Multi-Asset Strategies and Solutions team, shares his equity counterpart’s affinity for dividend stocks, and sees a particular opportunity after the valuations of high-dividend stocks were beaten down last year,” according to BlackRock research. “He cites the potential for company dividends to grow across time as a benefit versus bond coupons, which are very low and fixed to maturity.”
Looking for Alternatives to Traditional Fixed Income ETFs? May 12, 2021
Low interest rates and jittery equity markets combine to highlight the allure of high dividend and low volatility exchange trade funds. Some ETFs, including the
CDL tracks the highest 100 dividend-yielding stocks of the CEMP U.S. Large Cap 500 Volatility Weighted Index with four quarters of positive earnings weighted based on their daily standard deviation, or volatility.
However, CDL isn’t the standard low volatility fund. Nor is it a traditional high dividend strategy. For example, components in its underlying index must have four straight quarters of positive earnings, indicating the fund adds elements of quality and dividend growth potential. CDL’s payout growth prospects are something for investors to mull over in this environment.
Love Value? Need Dividends? A FlexShares ETF for You May 12, 2021
At the factor level, two prominent themes are in place through less than five months into 2021. First, it’s clear value stocks are regaining long lost market leadership. Second, dividend growth is on pace for an impressive year, bringing relief to investors in a low-yield climate.
The
FlexShares Quality Dividend Defensive Index Fund (NYSEArca: QDEF) is an exchange traded fund that provides investors exposure to both the value and dividend resurgences. Owing to the value factor’s tendency to outperform following recessions, QDEF is a relevant consideration for income investors today.
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