The following video is part of our “Motley Fool Conversations” series, in which analyst John Reeves and advisor David Meier discuss topics across the investing world.
August was a bad month for dividend big-dividend payers, according to an article by Bespoke Investment Group. High-yield companies had, by far, the lowest returns in the S&P 500. No-yield companies had the highest. There was a similar trend in the Dow Jones Industrial Average. Low-yielding stocks like Cisco and Home Depot put up some big returns with yields much lower than the nearly 3% Dow average. In contrast, Verizon and AT&T, the two companies with the highest yields, were two of the worst performers. But who cares what happens in just one month? Investing in dividend-payers is a long-term investment -- think 10 years, not 10 months. John and David’s investment in ExxonMobil is a good illustration. They know the company will have steady growth and that its management remains committed to doing what’s best for stakeholders and shareholders. So forget August. Look to 2022.
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