Dividend Aristocrats Survived September

September lived up to its reputation for being the worst performing month for the stock market. It seemed an equity investor had no place to hide. On the other hand, Standard & Poor's Dividend Aristocrats held up fairly well for the month.

Preliminarily, the 4-week return for the Aristocrats equaled -4.4% versus a return of -5.8% for the Dow Jones Industrial Average and -8.8% for the S&P 500 Index. On a year to date basis, the Aristocrats returned -8.2% versus the Dow return of -18.2% and the S&P 500 return of -20.7%. The spreadsheet below details the return of the Aristocrats.

The gloom and doom displayed in the market Monday was nearly reversed Tuesday. Maybe a bailout package in the form presented Monday is not needed. It seems regulators may be addressing some regulatory issues that seem to be contributing to the market stress, one being FAS 157 (mark to market accounting). Additionally, the FDIC is looking at increasing insurance limits on bank deposits. I think the point of all this is we do not need to rush a bad piece of legislation through Congress. Some type of additional monetary support is likely needed from the government, but let's not allow the government to gain ownership of public companies.

Comments

[anarchist:]

It may be time for "the government to gain ownership of public companies", they can't run themselves profitably, they lie and cook the books so maybe it's time to Nationalize the banking industry. The U.S. has long had heavy regulations on Utilities because it is necessary for them to serve the public and not be jacked around by price gouging and incompetence. Well we are now told that the free market economy can't function without the banking industry which has proven itself incompetent thus needing strict regulation (another word for Nationalization).

2008 Oct 01 12:32 PM

[Dividends A...:]

Great table David, thanks!

2008 Oct 01 01:01 PM

[whidbey:]

Really a little goodie is it not, the dividend stocks are nice, but that hardly makes up the whole market or the economy for that matter. Having a portfolio that includes dividend paying stocks is a good idea, comes under diversification. Wholly unconnected is the clap traddle about mark to market: either we know the value or we don't, if we do not we say so. It is the truth and avoiding it is dishonest. As for your FDIC approval, it is only to help the banks hold on to deposits. But when a bank weakens the depositor who watch price know when its time to leave. You like hiding your head under bushels when the view is not your liking. That is not reasonable or supportable.

2008 Oct 01 02:26 PM

[ajhough:]

I own a good number of stocks in the list and have held my own quite well during September. However, the economy must be allowed to grow.

2008 Oct 03 02:36 PM

[Football Geek:]

BAC just cut their dividend in half ... better delete them from the list

2008 Oct 07 12:01 AM

[Michael Zhuang:]

Nice research! My own research shows high dividend paying stocks recovered 9 years sooner than low dividend stocks in the Great Depression.

investmentscientist.co.../

2008 Oct 17 11:13 PM