THE KIPLINGER DIVIDEND 15 UPDATE OUR DIVIDEND PICKS HOLD UP IN A BAD MARKET
Kiplinger's Personal Finance|December 2022
Tweaks to the list this year focus on growing payouts.
NELLIE S. HUANG
THE KIPLINGER DIVIDEND 15 UPDATE OUR DIVIDEND PICKS HOLD UP IN A BAD MARKET

The past year has been a doozy for stock and bond markets. Twelve months ago-the last time we did an extended review of the Kiplinger Dividend 15, the list of our favorite dividend stocks-interest rates were low, the S&P 500 index was hitting new highs, and the Bloomberg U.S. Aggregate Bond index was treading water. Today, the stock market is in the gutter, short-term interest rates have climbed three percentage points, and the Agg is set to post its worst-ever annual return.

The flip in the markets and interest rates calls for a strategy shift in dividend-stock investing, says Ross Frankenfield, a managing director at Harbor Capital Advisors. When interest rates were low, investors were keen to reach for yield and buy stocks that sported high yields. But a Harbor study shows that although those shares do well when interest rates are low, they tend to underperform when rates are rising. "It's now important to focus on high dividend growers rather than high yielders," says Frankenfield.

Michael Clarfeld, a portfolio manager at ClearBridge Investments, agrees. A focus on high-quality companies that are increasing dividends regularly, he says, is key these days. Such firms tend to have pricing power, which helps them maintain profitability and raise payouts even when the economy is slumping. "That's critical today," he says. "It's not about income. It's about dividend growth."

We're keeping that in mind as we review the roster of our favorite dividend-paying stocks. Over the past 12 months, the Dividend 15 delivered an average total loss of 6.8%, compared with a 16.0% loss in the S&P 500 stock index. Ten stocks beat the S&P 500, four with a positive return: AbbVie, Lockheed Martin, Enterprise Products Partners and Johnson & Johnson. Another five lagged the S&P 500, including Blackstone, Verizon Communications and Emerson Electric.

Esta historia es de la edición December 2022 de Kiplinger's Personal Finance.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.

Esta historia es de la edición December 2022 de Kiplinger's Personal Finance.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.

MÁS HISTORIAS DE KIPLINGER'S PERSONAL FINANCEVer todo
MAKING A DIFFERENCE IN THE LIVES OF DISABLED VETERANS
Kiplinger's Personal Finance

MAKING A DIFFERENCE IN THE LIVES OF DISABLED VETERANS

He suffered grave injuries in the line of duty. Now he helps other veterans who have disabilities.

time-read
2 minutos  |
November 2024
DO YOU NEED UMBRELLA INSURANCE?
Kiplinger's Personal Finance

DO YOU NEED UMBRELLA INSURANCE?

A policy can protect you from financially devastating events.

time-read
2 minutos  |
November 2024
Navigating Finances as a Blended Family
Kiplinger's Personal Finance

Navigating Finances as a Blended Family

Money matters can get complicated when two families unite. Planning is key.

time-read
4 minutos  |
November 2024
BREAKING UP WITH YOUR BROKER
Kiplinger's Personal Finance

BREAKING UP WITH YOUR BROKER

Be aware of these challenges when you move your money to a new home.

time-read
5 minutos  |
November 2024
CHOOSE A MEDICARE PLAN THAT'S RIGHT FOR YOU
Kiplinger's Personal Finance

CHOOSE A MEDICARE PLAN THAT'S RIGHT FOR YOU

Consider your health care needs over the long term as you weigh costs and coverage.

time-read
9 minutos  |
November 2024
Keep Faith in These Stocks
Kiplinger's Personal Finance

Keep Faith in These Stocks

IN 1997, I coined the phrase “faith-based investing.” It has nothing to do with religion or with picking stocks at random.

time-read
5 minutos  |
November 2024
OUR ESG PICKS ARE THRIVING
Kiplinger's Personal Finance

OUR ESG PICKS ARE THRIVING

Despite an ongoing backlash, our favorite stocks and funds focused on environmental, social and corporate governance issues had a good year overall.

time-read
9 minutos  |
November 2024
MONEY MANNERS FOR THE MODERN AGE
Kiplinger's Personal Finance

MONEY MANNERS FOR THE MODERN AGE

The customs for splitting a restaurant check, purchasing a wedding gift, tipping and more have evolved. These guidelines can help.

time-read
8 minutos  |
November 2024
ELECTION 2024: POLITICS AND YOUR PORTFOLIO
Kiplinger's Personal Finance

ELECTION 2024: POLITICS AND YOUR PORTFOLIO

Who wins the White House matters—but only at the margins when it comes to your investments.

time-read
2 minutos  |
November 2024
YOUR GUIDE TO OPEN ENROLLMENT
Kiplinger's Personal Finance

YOUR GUIDE TO OPEN ENROLLMENT

With health care costs on the rise, it’s critical to select a plan that fits your needs at the right price.

time-read
7 minutos  |
November 2024