PEY holds 50 U.S. stocks with the highest yields that have increased dividends for at least 10 consecutive years. The fund tracks a yield-weighted index that favors higher payers, where dividend coverage can weaken first. T. Rowe Price shows a long dividend streak supported by earnings and cash flow, with a payout ratio around 55%. LyondellBasell shows the risk of yield-weighting: it reported a large net loss while paying dividends, then cut its quarterly dividend by 50% after funding distributions from cash reserves. Flowers Foods continues a dividend increase, while guidance implies tighter earnings support ahead.
"PEY tracks the NASDAQ US Dividend Achievers 50 Index, a yield-weighted screen of mid-cap dividend payers with a record of consecutive annual increases. Yield-weighting leans into the highest payers, where dividend coverage tends to crack first. The six names below show what that tradeoff looks like."
"T. Rowe Price ( NASDAQ:TROW | TROW Price Prediction) is the textbook holding. The quarterly payout rose from $1.24 in 2024 to $1.27 in 2025 to $1.30 in Q1 2026, extending a streak back to 1999. With trailing EPS of $9.32 against a $5.11 annualized dividend, the payout ratio sits near 55%, the cushion you want from an asset manager whose AUM swings with markets. Q1 2026 operating cash flow of $966 million confirms the dividend is funded from real earnings."
"LyondellBasell Industries ( NYSE:LYB) posted a $738 million net loss in 2025 while paying out $1.76 billion in dividends, funding distributions from cash reserves rather than earnings. The market got its answer in March: the quarterly dividend was cut from $1.37 to $0.69, a 50% reduction. For PEY, that is the dividend-achiever thesis breaking in real time. The fact that LYB is up 68% year to date reflects relief that management rebased the payout."
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