Time to Stay Away From Dividends?

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.

If you're interested in discovering some additional high-yielding stocks, The Motley Fool has compiled a special free report outlining our nine top dependable dividend-paying stocks. It's called  "Secure Your Future With 9 Rock-Solid Dividend Stocks." You can access your complimentary copy today at no cost! Just click here to discover the winners we've picked.

David Meier has no positions in the stocks mentioned above. John Reeves owns shares of Verizon Communications. The Motley Fool owns shares of ExxonMobil. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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