10/5/2026
By Karina Hernandez, Senior Research Analyst

So Far, So Good

It’s been a good year for dividend strategies, as the three largest high-dividend exchange-traded-funds (ETFs) have outperformed the S&P 500, while yielding well over 3%. The common theme is rotating into cash-generative companies trading at reasonable multiples in sectors such as Health Care (XLV), Consumer Staples (XLP), Energy (XLE), and Industrials (XLI).

However, finding high-yield stocks is getting harder to find. S&P 500 stocks that offer a higher yield than the 10-year Treasury yield saw a dramatic collapse to about 3.85% to 5%. This is the lowest since May 2007 and indicates the market environment has returned to a traditional setting, where fixed income provides yield stability, while dividend growth stocks drive compounding wealth over time.

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Karina Hernandez
Wall Street Strategies