BofA Screens for Secured, Non-Scheduled Dividends (NYSEARCA: IWB)

news7h09/05/2022

6 1 minute read

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Wall Street is transitioning into a payback world, and contributing dividends to that return will be more important than the days of sky-high prices, BofA Securities said.

“We advise investors to identify companies with markets on and secure – not stretched – dividend yield,” strategists Savita Subramanian and team wrote in a note.

“We advise investors to identify companies that have a dividend yield in the market and are safe – not stretched –,” says Subramanian. “Russell 1000’s Quintile 2 followed by dividend yields could be a good first pass: it covers the second-highest period of dividend yielders in the index.”

“It has guarded against owning troubled companies moving into Group 1 (the group with the highest dividend yield) when prices fall prior to a dividend cut. Group 2 also incorporates the discipline of valuation in it. if prices rise much faster than dividend growth, companies will migrate into Quintile 3.”

In August, the BofA Quintile 2 monitor performed better than the Russell 1000 equivalent weight monitor (EQAL) on the basis of gross profit, -2.4% compare to -3.1%.

Here is the first half of the Quintile 2 stock group for September: