Why do dividend stocks may be more similar to bonds in the flying market

For many investors it’s always Good time for dividendsWhen the income component comes to shareholders from cash flows that provide peace, regardless of short -term ups and falls in stock prices. But now as stock and bond Both markets see sharp spikes in volatility, dividends shares may please an even wider group of investors, playing more role between growth and yields.

Currently, there are more than 100 shares focused on dividend stocks, although the vast majority of assets focus on the largest indexes, including Vanguard Dividend Aferiation ETF (Vig), Schwab US Dividends ETF (SCD), and ishares the main increase in dividend ETF (DGRO).

Top -5 Dividends ETF, General Assets in Management

1. Avananguard Dividend Skilition ETF: 81 billion
2. Schwab US Dividends ETF: 65 billion
3. Vanguard High Dividend Index ETF: 54 billion
4. ISCHARE BASE DEVARDS ETF: $ 28 billion
5. SPDR S&P Divide ETF: 19 billion dollars

Source: ETfaction.com

As Actively managed space ETF continues to riseA growing number of actively managed dividends such as T. Row Divide .

TDVG was one of the first ETFs that T. Rowe Price, which is known for its traditional mutual funds launched in 2020. The company now has $ 19 ETF and $ 13 billion in ETF assets. The ETF dividend has more than $ 700 million.

Unable to avoid but may limit technology

Investors seeking to avoid technological stocks, given the recent market rough patch, though they did it Last week sharply bounces back. TDVG’s best stocks – Apple and Microsoft, each of which is about 5%. They are also among the main possessions in DGRO Viguard’s Vig and ISShares.

Investors who expect Can be impacted by some of the largest dividend payers in the technology industry, not enrolled in the weight of the technology sector as a whole, as the S&P 500 index, through dividend ETFs such as TDVG.

“We finally reached the point in the cycle, when the” Mag 7 “is overweight, all of them reached its limit,” said Todd Son, head of ETFs in Strateos, last week CNBC “ETF Edge”

“It is not to zero, but it is a little watered, or you overweight one name and insufficient weight the rest,” he said.

TDVG’s largest shares after Apple and Microsoft – Visa, JP Morgan and Chubb. Him The overall impact of the technological sector Approximately 19%, compared to the close to 30% for the S&P 500.

Tim Cone, head of the ETF Business T. Rowe Price, said together with SOHN at “ETF Edge” that macro -themes and dividend payments have led to a strong influx in the ETF dividend funds.

With more than $ 10 billion in the ETF dividends, the category is keeping up with other “factory” investment approaches to the US stock market, according to ETF data, but the cost ($ 12 billion) and the growth of ETFs ($ 15 billion) has yet been accepted a little more in the streams.

Best Dividends ETF, by Modern Performance

1. US Franklin low instability index high dividend ETF: 3.7%
2. ACTIVE DIVIFT ETF income: 2.3%
3. Ishares Core High Dividend ETF: 1.9%
4. First trust in the Dividend Index Morningstar Index: 0.7%
5. Monarch Dividend Plus ETF: 0.2%

Source: ETFaction.com

Cain says actively managed ETF dividends, in particular, make sense for investors in the changing market. Passive dividend funds are more static by nature, as they only change stocks within regularly planned balance periods for major indexes, rather than in response to any changes in the stock or impulse of the sector or in the general market atmosphere. TDVG is looking for a double payment target of dividend income, but also a long -term capital estimate in the stock prices it retains.

ETF’s actively managed dividends do not compete on the popularity of the ETF index options. Passively managed ETF dividends, in accordance with the broader trend of investors, recorded the majority of flows in 2025, about $ 7 billion, against $ 3.7 billion for the active implementation of the ETF dividend, ETF Actions reports. Sleep said the ETF dividend index continues the great advantage, and one of the reasons is a much less cost. “I could buy an ETF dividend in just a couple of basic points, but you see more active players,” he said.

TDVG has a cost ratio of 0.50% (or 50 basic points). For comparison, Vig Vig charges 0.05%(or 5 basic points).

Sleep says actively managed dividends should make additional progress in asset collection over time. “You will start seeing a great attraction among the active executives who will also focus on the search for dividends, or at least properly appreciated, and they also have a dividend as some bonus in a sense.”

It is the pensioners living on fixed income, usually the most from the dividend investment strategy, “” older people who want this income flow because they are not so dependent on salaries every two weeks, “the dream said.

But he added that the look at dividend shares makes sense for many types of investors. This is especially true, he said, at the time of increased risk in the bond market, where investors most often get yields.

Top Dividends ETF by Current Yield

1. Invesco KBW High Dividend Financial Income: 14%
2. HOYA CAPITAL HIGH DIVIDEND VAIDEND ETF: 11%
3. Invesco KBW Premium
4. Infrastructure Capital Income ETF: 9.7%
5. Kraneshares Value Line Dynamic Dividend Equity Index ETF: 9.2%

Source: ETFaction.com

According to the ETF ETF. The best dividends of the ETF in performance, on the contrary, pay much smaller yields, with the top five months of dividend revenue from 1.3% to 4.2%.

Never buy just yield

The ETF Edge and CNBC correspondent Bob Written Pysani warns investors against the purchase of the dividend based on only profitability. The highest bidders on the interest can also be the most vulnerable to reduce dividends when their financial situation is weakening. The last example was the energy sector, where many major oil and gas companies had great dividends that became vulnerable when their balances have been in tension in recent years, although they have been healed since then. The goal should be the balance of stocks that are consecutive dividend payers, as well as the purpose of capital gratitude.

One of the best market stocks for the whole year does not pay dividends and never has: Berkshire Hethai Woran Buffett – however New ETF tries to decide this.

Cain noted that concern about the financial payer, which is paid, and the reduction of the payments to which investors came depends on where the active management can change the situation: “Navigation in the markets, because you see an increase in volatility and even disposable stocks in sectors or in various fields.”

Corporation’s cash flows will be conducted by a new test during the World Trade War, which can lead to risks for foreign revenues of US companies as well as their profits. But the strong dividend payers can be attractive to investors in the market, where bonds are also under atypical stress from the economic policy of the Trump administration. Although it will be too far away to say that the market has a system “credit problem”, the dream market noted that the propagation of bonds has expanded both in the corporate bond market and the CD market, and investors are pulling out of high-yield funds.

“You do not want to get high yields when the credit background deteriorates for corporate America,” the dream said.

Refusal