Tuesday, September 02, 2014

Dividend Payers' Return Lags Non Payers In August

The equal weighted return of the dividend payers in the S&P 500 Index continues to lag the return of the non payers in August. As a consolation though, the payers equal weighted return is ahead of the cap weighted S&P 500 Index on a YTD and 12-month basis.

From The Blog of HORAN Capital Advisors

This equal weighted outperformance of the non-payers has carried over into the performance of Guggenheim's equal weighted S&P 500 Index (RSP) versus the cap weighted S&P Index as noted in the below chart. A number of the larger cap dividend payers have struggled on a year to date basis with a number falling in the consumer discretionary sector and industrial sector. For example, on a price only basis, Boeing (BA) is down 7.10%, United Technologies (UTX) is down 5.11%, General Electric (GE) down 7.31%, Best Buy (BBY) down 20.04% and Bed Bath & Beyond (BBBY) is down 19.98%.

From The Blog of HORAN Capital Advisors

Disclosure: Family long GE and UTX

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