Some big-name shares are sporting chunky dividend yields. Many yield-starved buyers are nonetheless saying no thanks.
Corporations within the S&P 500 with at the least a quarter-century file of paying out and growing dividends—dubbed “dividend aristocrats” by Wall Avenue—have trailed the broader inventory market this 12 months. That’s whilst record-low rates of interest have resulted in a shortage of yield the world over.
The S&P 500 Dividend Aristocrats Index, which measures the efficiency of 65 corporations, has fallen 0.7% this 12 months, whereas the broader S&P 500 has risen 7.3%. That places the benchmark index on tempo to outperform the dividend aristocrats index by the widest margin since 2007.
In the meantime, a few of the most iconic dividend aristocrats have fared even worse.
Exxon Mobil Corp. , whose dividend yield is sitting at a near-record of greater than 10%, has tumbled 51% in 2020, burned by a collapse in oil prices. AT&T Inc., with a dividend yield of greater than 7%, has fallen 29% because the coronavirus pandemic has weighed on the corporate’s foray into show business. And Walgreens Boots Alliance Inc., providing a virtually 5% dividend yield, has plummeted 35% as fewer customers have trafficked its stores because of Covid-19.