Published on 30 Mar 2024 on Insider Monkey via Yahoo Finance
11 Best Beaten Down Dividend Stocks to Invest in Now
In this article, we discuss 11 best beaten down dividend stocks to invest in. You can skip our detailed analysis of dividend stocks and their performance in the past, and go directly to read 5 Best Beaten Down Dividend Stocks to Invest in Now.
In 2023, investors piled into tech stocks as the sector benefitted from favorable macroeconomic conditions and the rise of generative artificial intelligence. Investors’ inclination toward tech stocks left dividend equities in the dust, despite being the winners in 2022. The tech-heavy NASDAQ finished 2023 with 43% gains, compared with a 5.74% return of the S&P 500 Dividend Aristocrats Index. However, due to consistent market volatility in recent years, investors are continually gravitating back to dividend-paying stocks, even after being distracted by the attractiveness of other asset classes temporarily. This becomes evident after analyzing the gradual increase in the amount of dividends paid by the S&P 500 over the years.
CNBC referred to data from S&P Dow Jones Indices and highlighted that S&P 500 companies paid $483 billion in dividends in 2020, down slightly from $485 billion in 2019. This is understandable as the year 2020 was marked by the widespread ramifications of the pandemic, causing nearly every industry and business to suffer. That said, there has been a constant uptick in dividend payments since then. After recovering from the ill effects of the pandemic, the US companies distributed $522 billion in dividends in 2021, which grew to over $564 billion in 2022, showing a significant increase of 8.1%. Finally, the figure reached a new record of $588.2 billion last year.