We have recently published a list of Why are these 10 dividend shares falling? In this article, we will take a look at where the International Corporation of Business Machines (NYSE: IBM) stands against other decline dividend shares.
The dividend season is here, and the big announcements are being introduced!
The overall market atmosphere has been on average negative since the new tariffs from the US shortly after he entered the Oval office, President Donald Trump announced a 25 percent fee for goods imported from Canada and Mexico. Chinese products, meanwhile, are left to treat an even higher fee of 60 percent.
As a result, on Monday this week, the wider market noted a sharp decrease of 0.76 percent, while Nasdaq reported the same trajectory but 1.20 percent.
Regardless of market conditions, investors have repeatedly shown interest in dividend shares, especially those of companies that have continuously increased their payments, making them popular among income -centered investors. Analysts have long tracked the performance of dividend aristocrats, both historically and recently.
In a January 2019 blog post titled “Dividend growth strategies and protection down,” Phillip Brzenk, the global head of many assets indices, examined how dividend growth strategies perform, especially during market decline. He noted that since the end of 1989, there have been six calendar years where the wider market gave negative returns. Interestingly, during each of those years, dividend aristocrats exceeded the broadest standard of capital with an average margin of 13.28%. Moreover, in three of those challenging years, they still managed to generate total positive returns. BRZENK further stated that when analyzed on a monthly basis, dividend aristocrats exceeded the market 53% of the time, with an average excess of 0.16%.
As mentioned earlier, dividend growth reserves have exceeded the broader market. From its beginning in 2005 to September 2023, the dividend aristocratic index gave a total return of 10.35%, exceeding the return of 9.54% of the wider market for the same period. Moreover, these shares suffered lower instability, measured to 15.35%, compared to 16.31%of the market. This suggests that their prices tend to be more stable, making them less susceptible to sharp fluctuations and emphasizing their overall resistance.
In the list of interpreters who underestimate, we will consider today, consider dividend companies with a minimum of $ 1 billion in market capitalization alone. Then we checked the returns of these shares and selected 10 shares that fell on 6 February 2024. The shares are listed in their dividend yields, since February 6 Q3 2024.
