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As Fast Money series producer John Melloy wrote earlier today in his blog , the iShares Dow Jones Select Dividend ETF is doubling the return of the S&P 500 over the last 1 month, reflecting a rotation out of the riskier (and non-income generating) trades like gold and into some good old-fashioned steady eddies. We've highlighted this trade throughout the month on the show as well as in this space . The ETF in this chart seeks to track companies that have stable dividend payouts that they increase consistently over time.
One reason why this trade is working is because the threat of dividend cuts, especially in the financial sector, is starting to lift. There have been zero dividend cuts or suspensions this month, according to Howard Silverblatt of Standard & Poors. What's more, with stocks already up more than 60 percent off their lows, investors believe valuations are stretched and believe price appreciation will be a smaller portion of overall stock returns next year. Dividends will take on a more crucial role, as they have throughout history to you Benjamin Graham fans.
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As you might imagine, the Fast Money gang has plenty of dividend picks. They follow:"I like Ship Finance for dividend yield," says Karen Finerman.
"Verizon is my dividend yield play," says Guy Adami.
"Piedmont is also worth a look," adds Joe Terranova.
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