Navigating the Stock Market: Strategies for Yield Improvement and Resilient Dividend Growth
Originally Published 2 years ago — by MarketWatch
High-yielding stocks have underperformed this year due to increased bond yields and a lack of outperformance by cyclical factors. However, investors can improve their returns by focusing on high-quality companies with sustainable dividends. Piper Sandler suggests using an "ability to sustain" screen, which analyzes cash flow, preferred dividends, capex, and common dividends. This approach has shown a 9% increase in returns compared to just screening for high dividend yield. Some attractive dividend payers identified by Piper Sandler include Altria, Verizon Communications, Keycorp, Truist Financial, Comerica, Boston Properties, AT&T, Simon Property, and Citizens Financial.