2 High-Yield Dividend Stocks Just Got Kicked Out of the S&P 500. Is Either a Buy Now?
Two dividend stocks just got kicked out of the S&P 500, but the forced selling may have created an overlooked buying opportunity.
Overview
When a stock is removed from the S&P 500, the immediate reaction is mechanical: Every index fund and exchange-traded fund (ETF) tracking the benchmark must sell it. That creates a short window of artificial selling pressure, pressure that has nothing to do with the underlying business.
For dividend investors willing to look past the noise, that moment can be worth a close look.
Details
On June 22, two companies were shown the door by S&P Dow Jones Indices: The Campbell's Company (NASDAQ: CPB) and Pool Corporation (NASDAQ: POOL). Both were replaced by semiconductor and electronics names -- a signal of how far the S&P 500 has tilted toward tech. Both Campbell's and Pool Corp. are in the S&P SmallCap 600 now, which means they're not disappearing from the market. They're just less visible.
Source
Originally published at www.fool.com.