Cash Your Dividends and Chill

THE obvious defense against unpredictable trading and challenging news events is to overweight everyday income-paying investments that are able to fight off the metaphorical financial drones and missiles.

- JEFFREY R. KOSNETT

My nominees are three perennial core categories, all of which are standing tall despite the war’s annoying effect on inflation and interest rates and the potential discord at the Federal Reserve. I refer to dividend mutual and exchange-traded funds, municipal bond funds, and energy infrastructure companies.

Looking at how these sectors have performed both for the year to date and since the U.S. attack on Iran, you might think the world is serene. (And on an unexpected booming-up day like April 30, sparked by favorable earnings reports, Wall Street indeed acts like a tropical island.) Five of my top time-tested dividend funds—Global X SuperDividend U.S. ETF (symbol DIV, $20), WisdomTree U.S. SmallCap Quality Dividend Growth (DGRS, $57), Schwab U.S. Dividend Equity (SCHD, $32), Alps Sector Dividend Dogs (SDOG, $67) and Federated Hermes Strategic Value Dividend (SVAAX)—are deep in the green for the year to date and well ahead of, say, the equal-weighted S&P 500 index fund from Invesco.