Investors in US equities are chasing companies that offer high dividends. But at what cost? Click on our infographic to find out more about the highest-dividend-paying US stocks—and what’s been driving the trend.
US companies that offer high dividends are very popular among equity investors today. Shares of these companies are trading near record high valuations, as the very low interest-rate environment prompts investors to seek stocks that act like bonds. The market’s composition—illustrated in our infographic—demonstrates the risks of investing in the highest-yielding passive equity funds. In today’s market, we believe a selective, active approach, focused on valuation, growth prospects and company fundamentals, is essential in the hunt for dividends.
The views expressed herein do not constitute research, investment advice or trade recommendations and do not necessarily represent the views of all AB portfolio-management teams.
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