Dividend Stocks are Not a Bond Substitute
The following is a guest post by Ben Carlson from A Wealth of Common Sense. If you would like to submit a guest post to The Dividend Ninja, check out our guest posting guidelines.
“Compare this with a 50% drawdown in stocks in the past bear market and you can see that bonds and stocks do not have the same characteristics for loss. Interest rates would really need to spike higher in a very short period of time to equal stock losses. And unfortunately, rates can stay low for long periods ...
McDonald’s (MCD): A Boring Dividend Stock for a Fast-Paced Market
Written by Ben Carlson
When bull markets are in full swing, investors become enamored with hot growth stocks. This explains why names like Tesla (TSLA), Facebook (FB) and Netflix (NFLX) have garnered the attention of market participants with their fast-paced growth prospects and volatile stock price movements.
It’s simply much easier to become more optimistic about future growth in technology companies when stocks are going up. People are making money hand over fist and everyone’s happy. ...
Go Global for Higher Yield Dividend Stocks
Written by Ben Carlson
One of the biggest fears investors have right now, is that interest rates will rise substantially from their current historically low levels. Many believe this inevitable interest rate increase could lead to the underperformance of dividend paying stocks.
Bonds are directly impacted by an increase in rates, but other income producing investments such as REITs, preferred stocks and dividend stocks could also be adversely affected. See my previous post – The Risks of High ...
Is the Stock Market in a Bubble?
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