"The recent high-velocity sell-off may be a preview of what's to come this year or in 2026. With the stock market poised to enter its fourth year of a rally supercharged by the arrival of ChatGPT from OpenAI in November 2022, some of the sparkle of the AI revolution is wearing off. Massive spending, circular financing, concerns over how companies are depreciating tech assets, and a host of additional items are weighing on investors."
"Investors seeking defensive companies that pay substantial dividends are drawn to the Dividend Aristocrats, and with good reason. The 69 companies that have been cut from the 2025 S&P 500 Dividend Aristocrats list have increased their dividends (not just maintained the same level) for 25 consecutive years or longer. But the requirements go even further, with the following attributes also mandatory for membership on the aristocrats list: Companies must be worth at least $3 billion for each quarterly rebalancing."
A recent high-velocity sell-off could signal further market weakness this year or in 2026 as the AI-fueled rally loses momentum. Elevated spending, circular financing, and questionable depreciation of tech assets are increasing investor anxiety and prompting warnings about a potential correction. Dividend-seeking investors favor the S&P 500 Dividend Aristocrats for their long histories of dividend growth and strict membership thresholds for market value and liquidity. A screening of the 2025 Dividend Aristocrats identified five top-value names rated Buy by major Wall Street firms, including Clorox with a notable yield and discounted valuation.
Read at 24/7 Wall St.
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