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Stocks & Markets Analysis
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One Chart: Investors are buying dividend stocks for safety

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Molly wealth talk joined discussion · Feb 9, 2022 17:51
According to WSJ, some investors are searching for safety by dumping shares of high-growth technology stocks for stodgier businesses that pay shareholders cash, including banks, oil companies and telecoms.
Source: WSJ, FactSet
Source: WSJ, FactSet
Shares of energy giant $Exxon Mobil (XOM.US)$ and regional bank $People's United Financial (PBCT.US)$ 3.21% are up double-digit percentages. Both have dividend yields of at least 3.4%, almost three times higher than the S&P 500's.

Investors poured $7.5 billion into funds that buy dividend-paying stocks in January, the most on record, according to data from Refinitiv Lipper, with more than $2 billion of inflows during the week ended Feb. 2.

However, if companies cut payouts amid deteriorating economic conditions, investors may abandon these companies.

$Dow Jones Industrial Average (.DJI.US)$ $Nasdaq Composite Index (.IXIC.US)$ $S&P 500 Index (.SPX.US)$ $Invesco QQQ Trust (QQQ.US)$ $Meta Platforms (FB.US)$ $PayPal (PYPL.US)$ $Verizon (VZ.US)$
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