S&P 500 organizations set a record in paying out cumulative dividends for the second quarter, which has supported investors in search for safety in income generating stocks and ETFs.
Over the course of the second quarter S&P stocks paid out $140.6B in dividends per S&P Dow Jones Indices data. Placing that figure into perspective, it's up from the previous quarters $137.6B payout and 2021’s second quarter of $123.4B.
As investors look for income in an uncertain market, dividend ETFs have become a popular breeding ground. The world’s five largest dividend exchange traded funds together have pulled in just under $20B in investor capital in 2022, $19.92B to be exact.
Those five funds are as follows: Vanguard Dividend Appreciation ETF ( NYSEARCA: VIG ), Vanguard High Dividend Yield Index ETF ( NYSEARCA: VYM ), Schwab US Dividend Equity ETF ( NYSEARCA: SCHD ), iShares Core Dividend Growth ETF ( DGRO ), and iShares Select Dividend ETF ( NASDAQ: DVY ).
Looking towards the future of dividends may be more bleak than usual. Chris O’Keefe, lead portfolio manager at Logan Capital Management told the WSJ : “The dividend-growth outlook will be more muted as we go into the next couple of years versus the last year.”
“But the outlook is still attractive for dividend strategies. Consistent growth and earnings and dividends are going to mean a lot more to people in a slowing growth environment than it had in the past.”
Year-to-date price action: VIG -15.2% , VYM -9.4% , SCHD -9.4% , DGRO -13.5% , and DVY -4.4% .
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Second quarter dividends top record payouts