The return for the dividend paying stocks in the S&P 500 Index have trailed the return of the non payers in the index this year. However, in April the return for the dividend payers narrowed this underperformance gap by outperforming the non payers, 3.21% versus 2.84%.
Although one month does not make a trend, given the general seasonal weakness experienced in the market going into summer, maybe investors are beginning to favor the generally higher quality payers at this point in the market cycle. Click to enlarge:
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|From The Blog of HORAN Capital Advisors|
Source: Standard & Poor's