Credit Suisse believes that dividend stocks are set for a period of outperformance according to a research note issued by the bank this week and reviewed by ValueWalk.
To capitalize on this trend, the bank prefers dividend stocks which support both an attractive yield and room for payout growth over high dividend plays. Credit Suisse also prefers dividend aristocrats (stocks that have increased dividends every year over a certain period of time (10 years in Europe and 20 years in the US)) over other dividend plays.
The aristocrats have tended to outperform pure high yield plays in almost every environment. Over the past 10 years, high yield has delivered an average annual return of 9% while yield with growth has...

