PEP - VYM: Spotting Alpha Among Inexpensive High-Dividend Stocks

2024-05-12 19:59:57 ET

Summary

• A significant percentage of global companies have increased their dividend payouts during Q1, compared to just 8% that have decreased them, according to Wall Street Horizon.
• The S&P 500 dividend payout ratio is historically low, suggesting potential for better yields in the future, potentially benefitting VYM.
• I reiterate a buy rating on the Vanguard High Dividend Yield Index Fund for its modest valuation, diversification, strong yield, and positive momentum.
• I highlight key price levels to watch on the chart.

There are promising trends developing for dividend-oriented investors. According to data provided by Wall Street Horizon, 27% of global companies that have provided updates on their dividend policies during the Q1 reporting period so far have increased their payouts. Just 8% have announced a dividend decrease. ...

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