Transcript:
This is money talks with Chad Olivier.
Sponsored by Olivier Group.
Hi. I’m Chad Olivier, CEO and certified financial planner with Olivier Group. In a market full of noise and volatility, it’s the steady dividend paying stocks that have been pulling ahead. We’ve seen plenty of volatility so far in two thousand and twenty six, and that’s not unusual.
But what is interesting is where the performance has been coming from. The S and P five hundred high dividend index is up about eleven percent year to date, while the broader S and P five hundred total return index is roughly flat. That tells us the high dividend segment has clearly outperformed the overall market so far for two thousand and twenty six. In other words, these big, well established dividend paying companies, the ones that don’t always make headlines, have actually been doing quite well.
Now don’t count out growth. High growth companies have been on a tear for a long time, and they still play an important role in your portfolios.
But after such a strong run-in growth stocks, maybe this is the season where some of those old time dividend companies can get a chance to shine again. There are a few reasons why this could continue. First, the economy is still holding up relatively well. Second, interest rates are expected to move lower.
And when interest rates go down, dividend paying stocks often become more attractive compared to bonds and cash. And third, in June when the new Fed governor comes in, many expect a more aggressive push towards lowering rates, which could make higher dividend stocks even more appealing for the income focused investors. That’s exactly why diversification matters, not just owning growth, not just owning dividends, but having a mix so you can take advantage of opportunities as the market environment changes. If you’re not sure how dividend stocks or growth stocks fit in your overall plan, visit us at oliviergroup dot com, where one of our certified financial planners can help you build a strategy that’s aligned with your goals.
That’s why money talks, but planning pays.
This has been money talks with Chad Olivier.
