Quality-stock and dividend-focused strategies shined during the market declines of 2022, rebounding from what investors may have found to be disappointing performance during the previous long bull market.
An approach to income that may diversify your portfolio and improve its long-term total return is a focus on dividend growth. Current yields in these portfolios may not be very high, but this type of fund can grow income over the long-term, while also pursuing capital appreciation. DIVZ quotes a 30-day yield of 3.64%. The 30-day yield provides an indication of the annualized level of current dividend payments, and is best used for comparison.
Looking ahead, Graff expects DIVZ to keep up with the S&P 500 SPX during bull markets, “or maybe trail a little bit.” When asked about broad changes to allocation he made during 2022, Graff said the fund entered the year with “a relatively high allocation” to energy stocks, after increasing exposure in that area through 2021. He also said the healthcare and consumer staples sectors were still “attractive,” but not across the board. “You still have to be valuation conscious,” he said.Exxon Mobil Exxon Mobil Corp. XOM is the fund’s largest holding, making up 6.2% of the portfolio.