Dividend Payers Lose Ground In June And A Review Of Equal Weight Strength

During the month of June the capitalization weighted S&P 500 Index was up 2.07%. The equal weight Guggenheim Index (RSP) returned 2.86%. This equal weight outperformance was also achieved by both the dividend payers and non payers in the S&P 500 Index. In total though it was the non payers that outperformed the payers during June by returning 3.91% versus the payers return of 2.56%. For the last twelve months though, the dividend payers maintain a performance advantage over the non payers, 34.11% versus 32.26%, respectively.

From HORAN Capital Advisors

Source: S&P Dow Jones Indices

This equal weighted outperformance of the payers and non payers over the S&P 500 Index is a phenomenon that is occurring on a longer term basis in the broader equal weighted index as well. As the below chart shows, over the last year the Guggenheim Equal Weight S&P 500 Index (RSP) is outperforming the S&P 500 Index. We discussed this positive equal weight trend in a post last month, Active Share And Equal Weighted Investment Strategies.

From HORAN Capital Advisors