Your Playbook For The New “Dividend Bubble”

There’s an alleged bubble in “low vol” stocks that is quickly extending to dividend-payers. Here’s how to play it. Since the start of the year, the iShares Edge MSCI Minimum Volatility USA ETF (USMV) has taken in more than $5 billion, placing it first among inflows for stock-focused ETFs. The fund holds stocks that don’t move much, such as General Mills (GIS) , AT&T (T) and Johnson & Johnson (JNJ) . Low vol was the rage for the first-half of 2016. Investors, wary of a stock market crash, sought refuge in these staples. USMV pays a modest 2.2%, but until last month there was hope that rising rates would breathe life into fixed income for those who needed actual yield. That changed for a while with the... Read more
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