Dividend stocks have stumbled amid COVID-19: What does that mean for investors?
“The downside was comparable. But the recovery was not,” says Ian Tam, director of investment research at Morningstar.The comparison is even less flattering when one looks at the so-called dividend aristocrats, commonly considered by investors as the upper crust of the dividend-paying stocks.In Canada, the iShares S&P/TSX Canadian Dividend Aristocrats Index ETF, which tracks companies that have been increasing dividends for at least five years, was down a whopping 18 per cent year-to-date as of June 4 compared with a drop of less than 8 per cent for the iShares Core S&P/TSX Capped Composite Index ETF, which tracks the entire Canadian stock market.On both sides of the border, the COVID-19 pandemic has hit some large dividend-paying companies.
United States
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Cases: 46 252 513
Deaths: 750 423
Recovered: 0
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India
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Cases: 34 321 025
Deaths: 459 652
Recovered: 0
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Brazil
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Cases: 21 835 785
Deaths: 608 235
Recovered: 0
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United Kingdom
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Cases: 9 215 683
Deaths: 141 607
Recovered: 0
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Russia
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Cases: 8 494 589
Deaths: 237 619
Recovered: 0
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