In the low interest rate environment of the last 10 years, have dividend stocks become a cult of sorts for income-hungry investors who have been unable to rely on bonds? That’s the argument made by the author of today’s article, who asserts that, today, “if you own companies that pay dividends then you are a “serious” investor, while if dividends are not a centerpiece of your investment strategy you are a heretic…” More importantly, he warns that there is danger associated with this cult of dividends and treating dividend-paying stocks as bond substitutes. For more, CLICK HERE.
The author of today’s article refers to it as “that classic wealth-killing blunder”: limiting the stocks in your portfolio to the “household names” (i.e. large caps) of the S&P 500 and ignoring midcap stocks. Midcaps, he points out, have been clobbering their small- and large-cap counterparts over the long-term – and as many have not seen the big price run-ups that larger players have experience of late, this creates a “Goldilocks” type situation. He proceeds to highlight three midcap plays to consider, each of which pays a dividend of up to 5.8% and is largely off Wall Street’s radar. CLICK HERE for more.