Investors are increasingly turning to dividend stocks as they await the Federal Reserve’s decision on interest rates in September. Paul Baiocchi of SS&C ALPS Advisors believes this is a wise move as the Fed is expected to ease rates. He notes that investors are shifting away from money markets and fixed income towards dividend-paying companies that may benefit from a declining interest rate environment. ALPS offers several dividend exchange-traded funds, including the ALPS O’Shares U.S. Quality Dividend ETF (OUSA) and ALPS O’Shares U.S. Small-Cap Quality Dividend ETF (OUSM), both of which are overweight in health care, financials, and industrials, while excluding energy, real estate, and materials due to their volatility.
Baiocchi emphasizes the importance of selecting dividends that are durable, growing, and well-supported by fundamentals in order to provide drawdown avoidance. Mike Akins, founding partner of ETF Action, agrees with Baiocchi’s defensive strategy approach with OUSA and OUSM, highlighting their clean balance sheets and stable dividend payouts. Akins notes the increasing popularity of dividend ETFs, attributing it to investors viewing dividends as a sign of a company’s financial stability and viability. While he acknowledges that the exact reason for the surge in dividend investing is unclear, he believes it reflects investors’ confidence in companies with a history of paying dividends over the years.
As investors anticipate the Federal Reserve’s decision on interest rates in September, many are turning to dividend stocks as a sound investment strategy. With the Fed expected to ease rates, investors are shifting away from money markets and fixed income towards dividend-paying companies that could benefit in a declining interest rate environment. ALPS Advisors offers dividend exchange-traded funds, such as OUSA and OUSM, which focus on sectors like health care, financials, and industrials while excluding volatile sectors like energy, real estate, and materials.
Baiocchi stresses the importance of selecting durable, growing dividends that are well-supported by fundamentals to avoid drawdowns and ensure stable returns. Akins supports this defensive strategy with OUSA and OUSM, noting their clean balance sheets and consistent dividend payouts as indicators of financial stability. The surge in popularity of dividend ETFs is attributed to investors viewing dividends as a sign of company viability and a strong balance sheet. While the exact reasons for the increased interest in dividend investing are unclear, Akins believes it reflects investors’ confidence in companies with a history of stable dividend payouts.
As the Federal Reserve prepares to make a decision on interest rates in September, investors are turning to dividend stocks as a potential investment opportunity. With expectations of the Fed easing rates, investors are moving away from money markets and fixed income towards dividend-paying companies that may benefit from a lower interest rate environment. ALPS Advisors offers dividend ETFs, such as OUSA and OUSM, which focus on sectors like health care, financials, and industrials while avoiding volatile sectors like energy, real estate, and materials due to their instability.
Baiocchi highlights the importance of selecting durable, growing dividends supported by fundamentals in order to avoid drawdowns and achieve stable returns. Akins agrees with this defensive strategy using OUSA and OUSM, citing their clean balance sheets and stable dividend payouts as indicators of financial strength. The growing popularity of dividend ETFs is attributed to investors seeing dividends as a signal of company viability and strong balance sheets. While the exact reason for the increased interest in dividend investing is uncertain, Akins believes it reflects investor confidence in companies with a history of consistent dividend payments.
