## Sunday, June 23, 2013

### Dividend shares remain resilient

As expected, dividend-focused shares have underperformed in this rising rate environment. The chart below shows a couple of broad dividend index ETFs vs the S&P500 (SPY) over the past two months.

 Source: Ycharts

Nevertheless on a year-to-date basis these same shares have performed about as well as the broader market. As discussed late last year (see this post), dividend shares never exhibited signs of a "crowded trade" and therefore were able to withstand this rate adjustment significantly better than fixed income products (see discussion).

SoberLook.com