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When Dividend Growth Lags the S&P What to Watch
Description
It's May 2026, and dividend stocks are in a curious spot. With the 10-year Treasury yield above 4.6% and the S&P 500 roughly flat over the past week, income investors are asking whether dividend growth can keep pace with inflation and market returns. Lucas and Luna dig into a concrete case: Johnson & Johnson, which has raised its dividend for 62 consecutive years but whose 5-year dividend growth rate has slipped below 5%. They compare J&J's trajectory with Procter & Gamble, which is growing its payout faster, and weigh the trade-offs between current yield and dividend growth. They also look at the broader dividend ETF landscape — VYM, SCHD, DVY — and how each handles the current rate environment. Plus, a listener question about whether dividend growth rate matters more than starting yield.