High-Dividend Stocks: The Unsung Heroes of the Market
While the S&P 500 has struggled to maintain its momentum since peaking on July 16, high-dividend stocks have emerged as the unsung heroes of the market. Take the iShares Select Dividend ETF (DVY) as a prime example: nine of its top stocks, including heavyweights like Lockheed Martin (LMT), Edison International (EIX), and Philip Morris International (PM), have surged by 8% or more since the S&P 500 hit its high. And that’s on top of dividend yields of 2.3% or higher. Let’s face it—these stocks are where the real action is.
While some investors are still chasing the next big AI play, those in the know are locking in gains with dividend stocks that offer both growth and income. As the Federal Reserve hints at potential interest rate cuts, dividends become even more valuable. The iShares Select Dividend ETF, with its solid 3.53% yield, has held its ground since mid-July, barely dipping even as the broader market wobbled. Year-to-date, this ETF is up 7.5%, keeping pace with the S&P 500’s 12.2% gain. Who says you can’t have your cake and eat it too?
“If you’re betting on a continued decline in interest rates due to economic concerns, you’d be foolish to ignore the power of dividend stocks,” says Bespoke Investment Group. They’re not just surviving—they’re thriving.
Lockheed Martin and Edison International: The Stocks You Shouldn’t Be Ignoring
Leading the pack in the iShares Select Dividend ETF is none other than defense giant Lockheed Martin. The stock has skyrocketed 18.9% since mid-July, making it one of the ETF’s top performers. And with a 2.3% dividend yield, it’s delivering the kind of returns that make you wonder why everyone isn’t piling in. Lockheed Martin’s strong fundamentals, including a Relative Strength (RS) Rating of 90 and a Composite Rating of 93, only add to its appeal. Sure, profits might dip by 5% in 2024, but they’re set to rebound by 7% in 2025. This is a stock with staying power.
Then there’s Edison International, a utility stock that’s anything but boring. As AI models gobble up electricity, Edison is cashing in, with its stock climbing nearly 12% since mid-July. Its 3.8% dividend yield and top-tier ratings—a 94 Composite Rating and an RS Rating of 89—make it a stock to watch. Who says utilities can’t be exciting?
Conclusion: Don’t Sleep on High-Dividend Stocks
In a market obsessed with the next big thing, high-dividend stocks are proving they’re the real deal. The iShares Select Dividend ETF is a case in point, delivering strong returns while offering a cushion against market volatility. With economic trends suggesting lower interest rates on the horizon, these stocks are not just a safe bet—they’re a smart one. Ignore them at your own risk.
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