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Best And Worst Performing Dividend Aristocrats Since The Coronavirus Outbreak

Mar. 02, 2020 9:54 AM ETNOBL, XOM, LEG, SWK, PPG, SYY, NUE, CVX, MDT, AFL4 Comments


  • The Coronavirus, COVID-19, continues to rapidly spread across the globe.
  • Bearish market sentiment is spreading even faster, with all relevant stock market indexes down, and with the S&P 500 posting the fastest correction on record.
  • High-quality low-risk stocks are poised to outperform in these difficult times, and there are no higher-quality or lower-risk stocks than the Dividend Aristocrats.
  • A look at some of the best and worst performing Aristocrats since the outbreak.

COVID-19 continues to spread around the world, with confirmed cases in all continents, over fifty countries, and with several instances of community spread in the United States. As the virus spreads, so does bearish market sentiment, with most market indexes plummeting in the past few days. The past week was the quickest correction in the S&P 500 on record, with investors and the broader equities market concerned about the economic havoc that the outbreak could have, and has had, on the global economy.

(Source: CNBC)

Conditions in China, where a significant chunk of world manufacturing takes place, are particularly bad, with the country posting the worst PMI in its history. A global recession, centered on particularly fragile countries, industries, and companies, seems likely.

(Source: Moneymaven)

I've already written about what I believe will be the implications of the above, mostly widespread supply chain disruptions leading to factory shutdowns and declining production in several industries, meaning reduced corporate revenues and profits, ultimately resulting in significant shareholder losses and market volatility. Investors seem to agree with my assessment, at least if the stock market's performance is any indication.

In my opinion, investors should strongly consider pivoting towards higher-quality lower-risk holdings, to minimize their losses during these volatile times. Dividend investors and retirees doubly so, to ensure that their dividend payments are as safe as can be, and to minimize the possibility of dividend cuts. Dividend Aristocrats (NOBL), S&P 500 components that have paid and increased their dividends every year for at least twenty-five consecutive years, seem like particularly strong investments today, as they generally consist of companies with strong, time-proven business models, with the capacity to perform adequately even under tough economic conditions. Dividend Aristocrats have managed to grow their dividends for their decades and will, I believe, continue to do so in the future.

This article was written by

Juan de la Hoz profile picture
CEF/ETF income and arbitrage strategies, 8%+ portfolio yields

Juan has previously worked as a fixed income trader, financial analyst, operations analyst, and economics professor in Canada and Colombia. He has hands-on experience analyzing, trading, and negotiating fixed-income securities, including bonds, money markets, and interbank trade financing, across markets and currencies. He focuses on dividend, bond, and income funds, with a strong focus on ETFs, and enjoys researching strategies for income investors to increase their returns while lowering risk.


I provide my work regularly to CEF/ETF Income Laboratory with articles that have an exclusivity period, this is noted in such articles. CEF/ETF Income Laboratory is a Marketplace Service provided by Stanford Chemist, right here on Seeking Alpha.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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