XOM - VIG: Dividend Aristocrats Rally To Fresh Highs Stick With It

2024-01-26 17:27:53 ET

Summary

• Active mutual funds are avoiding high-dividend-paying stocks, but investors can still capture yield without sacrificing growth with dividend aristocrats.
• Vanguard Dividend Appreciation Index Fund ETF Shares is a recommended option, offering a balance between dividend companies and growth-focused firms.
• The VIG ETF is a large fund with a diversified portfolio, solid earnings growth, and a lower P/E ratio compared to the broader market.
• I highlight key price levels to watch on the chart as Q1 presses on.

Active mutual funds continue to shun dividend-paying stocks, at least according to FactSet stock ownership data, reported by BofA earlier this week. The relative weight of long-only mutual funds to the high-dividend yield factor is near 50%, near its average since late 2016. Will managers eventually come around to the yield factor? Hard to say, but investors can capture yield without having to sacrifice growth, currently en vogue among many global portfolio managers....

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