Investors worried regarding the marketplace might wish to take into consideration stocks that have actually stood the examination of time — or else referred to as returns queens.
That’s a leading method for Roundhill Investments, which introduced its S&P Dividend Monarchs ETF this month.
“It’s named that for a reason. It focuses on the dividend monarchs. These are companies that have increased their dividends each and every year for a minimum of 50 years,” Roundhill’s primary method police officer David Mazza informed CNBC’s “ETF Edge” today.
According to the company’s web site, it’s the initial U.S.-listed ETF created to track the efficiency of these type of stocks.
“These companies have been through it all. They’ve been through wars, recessions, most recently a global pandemic and they’ve been able to reward shareholders with an increase in their dividends each and every year,” stated Mazza, that describes a lot of them as President “Dwight Eisenhower”-period stocks.
As of Nov. 9, FactSet reports the S&P Dividend Monarchs ETF’s leading holdings are 3M, Federal Realty Investment Trust, Leggett & Platt, Black Hills Corporation and Stanley Black & Decker.
‘No direct exposure to IT and no direct exposure to interaction solutions’
“It’s a healthy and balanced obese to customer staples, industrials, and after that energies. So, it is a mix of your traditionally defensive sectors,” he kept in mind. “In this ETF, [there’s] no direct exposure to IT and no direct exposure to interaction solutions. So, for investors who are looking to reallocate away from those names that have led the market higher this year… something like the dividend monarchs ETF can be an opportunity for them.”
VettaFi’s Todd Rosenbluth also sees dividend monarchs as a safer play for investors right now.
“I think we’re seeing as bond yields have come down, dividends are going to be more appealing. Investors, through dividend strategies… can benefit from upside in the stock market but also get some of that downside protection and stability with dividends,” the firm’s head of research said.