The New York Stock Exchange kicks off a quarterly dividend feast. As a result of major corporations, led by major Wall Street banks, raising their shareholder dividends one after another, experts predict that dividend income will increase sharply in the third quarter of this year (July-September). As the spread of the COVID-19 delta mutation originating from China has emerged as a risk in the second half of the year, investors are also looking for stocks that can earn both market profit and dividend income from rising stock prices.
According to CNBC’s analysis of FactSet and ETF.com data on the 3rd (local time), the ‘Vanguard Dividend Appraisal’ was ranked as the top 5 stocks among exchange-traded funds (ETFs) with over $2 billion in assets under management. Index Fund (VIG), Vanguard High Divided Yield (VYM), Schwab US Dividend Equity (SCHD), SPDR S&P Divided (SDY), iShares Core Dividend Gross’ (DGRO) was selected.
Among them, if you look at VIG, which has the largest asset under management with $61.76 billion, the 12-month target price has more than 10% upside from the current market price, and Microsoft and Black are among the constituent stocks with over 70% ‘buy’ investment opinion. Rock, UnitedHealth, and Activision Blizzard were selected as the most promising individual stocks in terms of dividend income and possible price rise. For example, Microsoft, in the technology stock sector, which has been criticized for being overvalued, was counted as having the third highest ‘buy’ investment opinion (81.6%) after insurance company Assurant and electric motor maker Legal Veloitte. On the 27th of last month, after Microsoft announced its ‘2021 2Q earnings’, the stock price rather fell. The very next day, JP Morgan raised the Microsoft target price from $300 to $310 through an investment memo and said, ‘Expand the weight. We maintained our ‘buy’ rating.
In the New York Stock Exchange, where many companies pay quarterly dividends, it is expected that a full-fledged dividend feast will begin in the third quarter of this year. Howard Silverblatt, S&P Dow Jones Indices senior analyst It is noteworthy that the Federal Reserve (Fed) allowed banks to pay dividends and buy treasury shares through a bank soundness assessment (stress test), and accordingly, major banks, including Morgan Stanley, raised their dividends in the third quarter.”
According to Silverblatt’s analysis, as of the end of last month, cash dividends paid by companies to shareholders were up 10.6% compared to the same period a year ago. He expects dividends this year to increase by 5% compared to a year ago.
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