PEY Pertinent for Equity Income Investors

Through the first half of 2026, artificial intelligence (AI) and technology continued dominating the U.S. equity landscape, prompting some investors to gloss over the long-term value of dividend growth investing. With the second half upon us, market participants might want to reconsider that perspective. That could prove to be sound advice at a time when many market observers remain bullish on equities while citing a long awaited widening of market breadth. Said another way, there’s evidence that non-growth sectors, such as financial services and healthcare, are contributing to broader market upside.

Investors that want to get in on that act while generating dependable equity income may want to evaluate ETFs such as the Invesco High Yield Equity Dividend Achievers™ ETF (PEY) . In quiet fashion, the $1.1 billion PEY is up nearly 16% year-to-date, soundly outpacing the 8.9% returned by S&P 500-tracking ETFs. Under any circumstances, that’s an impressive feat. It’s even more noteworthy considering that PEY, turning 22 years old in December, devotes just 2.66% of its weight to tech stocks.

As the ETF’s name implies, it is a high-dividend strategy, highlighted by a 30-day SEC yield of 4.56%. However, the fund isn’t just a high-yield affair. It tracks the NASDAQ US Dividend Achievers™ 50 Index, which includes stocks based on both yield and dividend growth consistency. The latter point is important because it can set up patient investors for long-term success. “Stocks with a history of dividend growth, on the other hand, could present a compelling investment opportunity in an uncertain environment,” noted S&P Dow Jones Indices. “An allocation to companies that have sustainable and growing dividends may provide exposure to high-quality stocks and greater income over time, therefore buffering against market volatility and addressing the risk of rising r...