What would cause a revival for dividend stocks?
In our view, high-yield dividend stocks can return to their historic outperformance once the trend towards high market concentration reverses and returns begin to broaden. Much of the recent mega-cap dominance has been driven by price/earnings multiple expansion. Profits in the 2030s and 2040s will be what they will be—at some point stock prices must fully reflect long-term profit prospects.
In the meantime, we expect high-yield dividend stocks to continue generating a high, growing income and solid investment returns.
This quarter we discuss a variety of topics and their implications, including:
- Long Holdings Periods Have Favored High-Yield Dividend Stocks
- A Decade of Low Interest Rates
- What Can We Learn from 1999’s Winners?
- Record Low Dividend Yields for 10 Largest S&P 500 Index Stocks
We expect high-yield dividend stocks to continue generating solid investment returns, and we will continue following our investment philosophy—getting paid to own stocks with high and growing dividends.
Please reach out to hear how we can help with positioning for Sustainable Income Opportunities®.
Best Regards,
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