Is the Dividend Trade Dead?

Updated

Dividend shares have had a great run, but that run may be over. In recent weeks, high dividend-yield sectors have lagged the broad market. In the current quarter, for example, the S&P 500's Utilities sector has lost nearly 4.5%, against a 4% gain for the index as of June 4. Why are high-yielding shares falling out of favor and what should investors do about it? For an answer to both those questions, watch the following video from Fool contributor Alex Dumortier and leave your comments below.

There's no question Annaly Capital's double-digit dividend is eye-catching. But can investors count on that payout sticking around? With the Federal Reserve keeping interest rates at historically low levels, Annaly has had to scramble to defend its bottom line. In The Motley Fool's premium research report on Annaly, senior analysts Ilan Moscovitz and Matt Koppenheffer uncover the key challenges the company faces and divulge three reasons investors may consider buying it. Simply click here now to claim your copy today!


The article Is the Dividend Trade Dead? originally appeared on Fool.com.

Fool contributor Alex Dumortier, CFA has no position in any stocks mentioned, and neither does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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