"Dividend paying stocks are attractive for a number of reasons. For investors looking to combat the effects of inflation on their savings, investing in companies that not only provide capital appreciation upside as prices rise, but also pay back a percentage of their earnings to investors in the form of dividends, is a time-tested strategy that still holds water (even though many top growth stocks have blown value/dividend stocks out of the water in terms of total returns over the past decade and a half)."
"One of the most underrated exchange traded funds (ETFs) in the market for cautious investors is the Invesco S&P 500 High Dividend Low Volatility ETF (SPHD). As its name suggests, SPHD tracks some of the lowest volatility stocks among the 50 highest-yielding names in the S&P 500. Thus, this is an ETF that nicely balances both yield for investors seeking more of their return from the income component companies can provide, alongside some risk management properties I think are attractive, especially now."
Dividend-paying stocks offer both capital appreciation potential and income through payouts of corporate earnings, helping investors offset inflation. Some investors prefer dividend-paying equities over growth stocks because current valuations have made income-focused strategies more attractive. The Invesco S&P 500 High Dividend Low Volatility ETF (SPHD) selects the lowest-volatility names among the 50 highest-yielding S&P 500 stocks, aiming to combine yield with risk management. Overall market volatility has eased since the tariff-induced spike, but weakening labor market signals and elevated valuations support a cautious approach. SPHD shows heavy exposure to defensive sectors such as real estate, utilities, and consumer staples, which can be more resilient in downturns, though a deep recession would affect most stocks.
Read at 24/7 Wall St.
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