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Guess dives right into the deep band when it comes to high dividend yielding stocks and it is paying off and a big way.
The wisdom tree at large cap dividend fund has been kicking -- total returns of more than 19%.
Over the past three years for -- folks.
But is this now a crowded trade.
Joining us -- box visits listen Jerry export structure -- was treat it got thirteen point six billion in assets under management.
So let me ask you about this dividend exchange it funds may huge splash and they've been very successful look at your -- 300 -- return there.
The number and at this is a crowded trade if you're concerned about that now.
I've death leaving hearings some some sentiment -- that they didn't such are getting expensive.
One of the -- I've been looking at our Latino rebalance if you look at how dividends and changing -- prices have changed.
We're now getting back kid.
Other price they're not back to their people I was from what from October 2007 if -- up 25% more to get back -- Then there's still dividend stocks are still up 25% cheaper than they weren't at the time in the market yeah I would say it's not a credit kinds of -- can essence saying okay.
Now if you compare.
Then to the S&P -- compare the -- Russell 1000 there is a return they air.
But can investors still bank on that return going forward I'm curious.
-- -- with the S&P last year I had zero price return and had 2% return all from dividends and that's not unique history if you look throughout history known for the last eight.
Decades you have more return from dividends and price -- 1930s 191970s.
Mid 2000 and it is that there is period of time we're Gibbons can out.
To the prices I think got some kind of environment people saw last year -- -- preference for the high given stocks that.
Evening and my next question which is something that we talked about before the segment and is is a here's your philosophy.
If a stock goes up.
But the dividend does not -- you -- -- right it's Daniel -- back to dividend stream -- example is eighteen TP ten billion dollars in dividends and we wheat.
ET -- in the portfolio the ten billion divided by the -- dollar dividends in the large cap index it's -- and forty billion.
It's about 4% weight and if -- he's price goes up they didn't don't we're gonna sell at three balance -- its stock fell.
Good even some public could Africa.
So that that -- that's -- adds to everything that's in your portfolio yeah so again at the stock price falls with the dividend remains the same.
If -- confident that they're gonna keep with the dividend the dividend -- becomes important question.
Yet for somebody CEOs and so many companies -- let's talk about overall strategy because you've got.
You've got your main fund which is DL and you've also got DT and they think -- really interesting because this is -- fun.
Dividend payers it excludes.
You were people asking you for this for you getting questions about how to get away from financials but still -- the dividend.
Prolific with indices I talk about have -- -- now packed their peak level from before the crisis.
That's financials -- 34% higher -- through the financials that drew giving -- had a 20% decline in -- in 2009 driven entirely by financials.
And so they just have this unique set of risk today that a lot of people are worried about the leverage in the banks in the -- this will.
You know they have is different set -- characteristics in the non financial companies particularly in the European markets but even in the US are people worried about the base and they wonder -- simple diversified way to get access to given stocks.
Without the financials and that's what we provided with -- -- You mentioned.
You mentioned AT&T some other names -- really like that are obviously major portions of either DTN or.
The other fund.
Here we don't have a subjective opinion on the individual stocks very in rules peace index providers so we will track the index -- that we create and we.
Al Q2 week by the the actual dollar value -- -- you have it K -- in the five largest up there eighteenth he General Electric Chevron.
Failed peace in the biggest dollar value total -- that better peed in the market that's Philadelphia that we didn't in something like dealing.
Jeremy Schwartz director of research at wisdom tree and just insanity right thank you very much Jeremy.
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