8/3/2026
By Karina Hernandez, Senior Research Analyst

Flipping the Script

Last year, dividends were the market’s afterthought - only up 6%- while non-dividend payers, the “Mag Seven,” and unprofitable companies returned solid gains. This year, the story has quietly reversed. As of July, dividend payers are the best-performing group at 18%, and even buybacks are sitting at the second-best performing group. For investors who have income names through the year, this is a payoff!

Classic “Dividend Sectors” Performance

Real Estate (XLRE) posted a solid 18% total return and ranked third in risk-adjusted return, surpassing the S&P 500 (SPX). This is a good story for income portfolios: one of the “dividend” sectors quietly outperformed the broad market, not on the yield, but on total return.

Energy (XLE), a classic high-dividend sector, rose 34% in total return year-to-date, with a strong 1.8 risk-adjusted score, well ahead of the S&P 500.

To read the full report, contact your account representative or email Info@wstreet.com.

Karina Hernandez
Wall Street Strategies