Dividend Darlings Trail Stock Market Despite Pumped-Up Yields

  • Date: 25-Oct-2020
  • Source: The Wall Street Journal
  • Sector:Oil & Gas
  • Country:Middle East
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Dividend Darlings Trail Stock Market Despite Pumped-Up Yields

Some big-name stocks are sporting chunky dividend yields. Many yield-starved investors are still saying no thanks.

Companies in the S&P 500 with at least a quarter-century record of paying out and increasing dividends“”dubbed "dividend aristocrats“ by Wall Street“”have trailed the broader stock market this year. That is even as record-low interest rates have resulted in a scarcity of yield across the world.



The S&P 500 Dividend Aristocrats Index, which measures the performance of 65 companies, has fallen 0.7% this year, while the broader S&P 500 has risen 7.3%. That puts the benchmark index on pace to outperform the dividend aristocrats index by the widest margin since 2007.



Meanwhile, some of the most iconic dividend aristocrats have fared even worse.





Exxon Mobil Corp.

, whose dividend yield is sitting at