Don’t be fooled by the counter-trend bounce, and persist with dividend shares, in line with Josh Brown. “Dividend aristocrats are the right place to be,” the co-founder and CEO of Ritholtz Wealth Management mentioned Tuesday on CNBC’s “Halftime Report.” ” Companies that pay dividends , companies with great cash flow , quality balance sheets, international stocks — international value in particular — this is where the puck has been headed already, and I think it will continue,” he added. The main averages are increased to begin the yr. In 2023, the tech-heavy Nasdaq Composite jumped 6%, as risk-on sentiment spurred traders to snap up beaten-up tech shares. Meanwhile, the Dow Jones Industrial Average and the S & P 500 superior by greater than 2% and 4%, respectively. Even so, Brown urged traders to take a step again, as two straight weeks of beneficial properties doesn’t essentially spell how the remainder of the yr will go, particularly in a rising rate of interest setting. “Why do we all of a sudden want to call an end to something that is very obviously the predominant trend just because of like seven great days for penny stocks and bitcoin?” Brown mentioned. “Let’s all relax. The big picture is: investors in a rising rate environment with a sort of, not quite sure, picture on the economy going forward are going to select for quality and cash flow and dividends. They do it every time. This time will not be different. The playbook works. Don’t try to be a hero and don’t try to anticipate the move after the move,” he mentioned. One ETF that tracks these so-called dividend aristocrats is the ProShares S & P 500 Dividend Aristocrats ETF (NOBL) .
Josh Brown says dividend aristocrats are the right place to be