COVID-19 Deaths Reach One Million

For Shareholders, Dividends Beat Buybacks | 8 Risky Jobs That Pay Big Bucks8 Risky Jobs That Pay Big Bucks | Created for {EMAIL} | [Web Version]( May 20, 2022 CONNECT WITH KIPLINGER  [LinkedIn]( [Facebook]( [Twitter]( [Instagram ]( [Youtube]( [SIGN UP]( ⋅ [WEBSITE]( [] What's in the Works [] COVID-19 infection numbers are still increasing in the U.S., as a sub-variant of omicron-2 takes hold. The pickup started in the Northeast in mid-April and has since spread to the lower Atlantic coast, Pacific coast, and the Midwest. Previous infection surges took roughly two months to peak. If the pattern holds with this variant, then the Northeast should see a decline in infections before the end of June. Regions of the country where the surge began later will see later peaks, of course. The omicron-2 sub-variant, designated as BA.2 12.1, appears to be a little more infectious than the earlier omicron-1 and -2 variants, but not more severe in its effects. Hospitalization rates are rising, of course, but not proportionately with new cases. That may be because the sub-variant is weaker, or because those who have gotten vaccinated with boosters or have had previous infections already have some degree of resistance. So far, states have declined to reimpose mask requirements or other restrictions, so how this surge plays out should be illustrative of what will happen with any future surges caused by new variants. [How To Earn a Tax-Advantaged 10% Dividend Yield]( The average annual return of commercial real estate over 20 years is roughly 9.5%, nearly 1% greater than the S&P 500's average annual return of 8.6%. The CRE Income Fund pays an annual 10% dividend yield and is a long-term strategy that returns over $25,000 for every $10,000 invested over the next ten years. [READ MORE]( ADVERTISEMENT [] Latest [] A milestone in the pandemic: total deaths caused by COVID-19 have reached one million, according to Centers for Disease Control and Prevention data. The death rate has edged higher as hospitalizations increase in the current surge, but less than in previous surges. The current variant may be weaker, or the wider use of treatment therapies like paxlovid for the critically ill may be helping. Publicly traded companies have a few ways to spend their cash to generate better returns, but perhaps the two most direct forms of “shareholder rewards” are [dividends]( (cash payments to shareholders) and [stock repurchases/buybacks]( (retiring existing shares, which in theory makes existing shares worth more and also benefits earnings-per-share comparisons with previous years). But if you had to choose one, fund provider ProShares says you’d probably be better off with cash in your hand. “Over time, dividends have been more stable than buybacks, and arguably represent a stronger and more lasting signal by management in their confidence in the future growth of their business. Management teams are far more reticent to eliminate a dividend, and investors in turn have come to take dividend cuts as a greater ‘tell’ on underlying business health,” ProShares says in a recent research report. “Meanwhile, buybacks often come when times are good and quickly go when conditions change. Indeed, buyback volumes dropped precipitously after the Great Financial Crisis and also at the onset of the COVID-19 pandemic.” It’s not just theoretical. ProShares compared the returns of the S&P 500 Dividend Aristocrat Index with the Nasdaq U.S. Buyback Achievers Index between Dec. 20, 2006, and April 30, 2022. The Aristocrats enjoy a performance lead, albeit a modest one at 10.9% annually versus 10.2% annually for the Buyback Achievers. But what also matters is how those returns were delivered. “The Dividend Aristocrats Index has produced significantly greater risk-adjusted returns,” ProShares says. “The buyback index has been significantly more volatile and has exhibited larger drawdowns and down-capture ratios relative to the broad market – an important distinction between the strategies in a market where volatility may linger.” Free download, [The Kiplinger Letter's Forecast](. No information required from you. [These Are the Top Financial Advisors in the US]( Hiring the wrong financial advisor can wreak havoc on your retirement and can potentially cost a big chunk of your savings. 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