Safety in Dividends?

Includes: DVY, IVV, QQQ, SPY
by: Bespoke Investment Group

Yesterday we discussed how dividend paying stocks have underperformed the overall market over the last year.  While high yielding stocks are generally thought of as providing a cushion of safety during times of market declines, other trends over the last year suggest this to be anything but the case. 

Of the 101 stocks in the Dow Jones Select Dividend Index, only 14 stocks (14%) are up over the last year compared to 35.2% of the stocks in the S&P 500. 

Meanwhile, even though the Nasdaq 100 has the fewest dividend payers and is thought of by most as being the most risky, over the last year, 44% of the stocks in the index are up.