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Dividend-paying stocks have a long history of outperforming non-dividend paying stocks—and with less volatility.1 Dividends have also been an important part of total return in the S&P 500 Index:2 Going back to 1940, 34.46% of the S&P 500 Index’s total return can be attributed to reinvested dividends and the power of compounding.3 It’s no surprise, then, why many investors and asset allocators have chosen to use dividend-paying stocks as a core holding in their portfolios.

 

1 Based on a study by Ned Davis Research on the dividend policy of S&P 500 Index stocks from 1973-2023.

2 S&P 500 Index is a market capitalization-weighted price index composed of 500 widely held common stocks.

3 Data Sources: Compustat and Hartford Equity Modeling Platform, 1/24.

Important Risks: Investing involves risk, including the possible loss of principal. The net asset value (NAV) of the Fund’s shares may fluctuate due to changes in the market value of the Fund’s holdings which may, in turn, fluctuate due to market and economic conditions. The market prices of the Fund’s shares will generally fluctuate due to changes in the relative supply of and demand for the shares on an exchange. • The Fund is not actively managed but rather attempts to track the performance of an index. The Fund’s returns may diverge from that of the index. • Investments focused in a sector, industry or group of industries may increase volatility and risk.

The views and opinions expressed herein are those of the author and are not necessarily indicative of those of all Hartford Funds’ portfolio managers and sub-advisers and may not be reflected in the strategies and exchange-traded products that Hartford Funds offers.

This information has been prepared from sources believed reliable but the accuracy and completeness of the information cannot be guaranteed. This material and/or its contents are current at the time of writing and are subject to change without notice.

This information should not be considered investment advice or a recommendation to buy/sell any security. In addition, it does not take into account the specific investment objectives, tax and financial condition of any specific person. This information has been prepared from sources believed reliable but the accuracy and completeness of the information cannot be guaranteed. This material and/or its contents are current at the time of writing and are subject to change without notice. This material may not be copied, photocopied or duplicated in any form or distributed in whole or in part, for any purpose, without the express written consent of Hartford Funds.

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The material on this site is for informational and educational purposes only. The material should not be considered tax or legal advice and is not to be relied on as a forecast. The material is also not a recommendation or advice regarding any particular security, strategy or product. Hartford Funds does not represent that any products or strategies discussed are appropriate for any particular investor so investors should seek their own professional advice before investing. Hartford Funds does not serve as a fiduciary. Content is current as of the publication date or date indicated, and may be superseded by subsequent market and economic conditions.

Investing involves risk, including the possible loss of principal. Investors should carefully consider a fund's investment objectives, risks, charges and expenses. This and other important information is contained in the mutual fund, or ETF summary prospectus and/or prospectus, which can be obtained from a financial professional and should be read carefully before investing.

Mutual funds are distributed by Hartford Funds Distributors, LLC (HFD), Member FINRA|SIPC. ETFs are distributed by ALPS Distributors, Inc. (ALPS). Advisory services may be provided by Hartford Funds Management Company, LLC (HFMC) or its wholly owned subsidiary, Lattice Strategies LLC (Lattice). Certain funds are sub-advised by Wellington Management Company LLP and/or Schroder Investment Management North America Inc (SIMNA). Schroder Investment Management North America Ltd. (SIMNA Ltd) serves as a secondary sub-adviser to certain funds. HFMC, Lattice, Wellington Management, SIMNA, and SIMNA Ltd. are all SEC registered investment advisers. Hartford Funds refers to HFD, Lattice, and HFMC, which are not affiliated with any sub-adviser or ALPS. The funds and other products referred to on this Site may be offered and sold only to persons in the United States and its territories.

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