Traders wearing masks work, on the first day of in person trading since the closure during the outbreak of the coronavirus disease (COVID-19) on the floor at the New York Stock Exchange (NYSE) in New York, U.S., May 26, 2020.
Brendan McDermid | Reuters
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Investing in dividend stocks during a period of economic upheaval can be a tricky business.
The violent fall for the market in February and March, and the sharp rebound in the months since, means that some of the more attractive dividend yields may turn sour for investors simply looking for the greatest payout.
“We tend to focus more on dividend growth aspect than absolute yield, especially now that so many of those industries are being disrupted and facing headwinds. Although the yield may remain stable in the near term, you might lose all of that an more on the price change,” said Yung-Yu Ma, chief investment strategist at BMO Wealth Management.
The table below shows stocks in the S&P 500 with a dividend yield at or greater than the median of the index and at least a 10% upside to the consensus analyst price target, according to FactSet.