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New fund bets big on Eisenhower-era stocks

Dividends "king" in recession

Investors concerned about the market may want to consider stocks that have stood the test of time — otherwise known as dividend monarchs.

That’s a top strategy for Roundhill Investments, which launched its S&P Dividend Monarchs ETF this month.

“It’s named that for a reason. It focuses on the dividend monarchs. These are companies that have increased their dividends each and every year for a minimum of 50 years,” Roundhill’s chief strategy officer David Mazza told CNBC’s “ETF Edge” this week.

According to the firm’s website, it’s the first U.S.-listed ETF designed to track the performance of these kinds of stocks.

“These companies have been through it all. They’ve been through wars, recessions, most recently a global pandemic and they’ve been able to reward shareholders with an increase in their dividends each and every year,” said Mazza, who refers to many of them as President “Dwight Eisenhower”-era stocks.

As of Nov. 9, FactSet reports the S&P Dividend Monarchs ETF’s top holdings are 3M, Federal Realty Investment Trust, Leggett & Platt, Black Hills Corporation and Stanley Black & Decker.

‘No exposure to IT and no exposure to communication services’

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