Thursday, May 13, 2010

Dividend Aristocrats Outperforming Year To Date

In a volatile market environment like the one experienced over the last several weeks, investing the foundation of ones equity portfolio in high quality dividend paying stocks can be beneficial. As the below table displays, S&P's Dividend Aristocrats are outperforming the broader S&P 500 Index on a year to date basis through 5/13/2010. The higher quality nature of dividend payers tends to provide a cushion in highly volatile down trending markets.

Data Source: Standard & Poor's

The S&P 500® Dividend Aristocrats index measures the performance of large cap, blue chip companies within the S&P 500 that have followed a policy of increasing dividends every year for at least 25 consecutive years.

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