Time To Rotate Into Quality Dividend Stocks

On August 21st, the Spyder S&P 500 ETF (SPY) hit a new 52-week high of $143.09. Before August, the markets had experienced great range trading that many intermediate traders have been able to cash in on. But once August came, a slow rising melt-up on little volume was all we got. Often times ending flat, or near flat, which allowed the VIX to drift below $14 several times. With the FOMC meeting today and a slew of economic data due out from Europe, investors should be leery. Fear is beginning to grow and investors are beginning to seek protection. If bonds, puts or currencies aren’t for you, perhaps quality dividend stocks are.

For those long already, I would suggest adding a little more if your position size warrants it. For investors with no positions in these names I suggest a starter position. Perhaps 1/3 to 1/2 of your full desired position. If the markets begin to erode, all of these names will likely head lower, but still pay out a nice dividend. Should the markets continue to rise, these names will go up with it.

Source: Rant Finance

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