Dividends4Life: Dividend Stocks Are The Worst Performers When Interest Rates Rise

High-dividend-paying stocks tend to outperform all other equities during long time horizons, but they are the worst performers when interest rates increase. What we found is that over a full period of 1927-2013, that high-dividend stocks had the highest returns. But in the periods of rising interest rates they actually were the worst-performing category, and actually companies that didn't pay a dividend outperformed by a substantial margin. Although dividend stocks may be a great investment for the long term, if rates rise quickly they may perform poorly.

Source: Morningstar

Related Articles:
- How To Buy Dividend Stocks At The Bottom
- 8 High-Yielding Dividend Aristocrats Not Afraid to Raise Their Dividends
- Three Keys For Successful Dividend Growth Investing
- 12 Dividend Stocks With A Quick Payback
- 9 High-Rated Dividend Stocks With Above Target Returns

Click here to have future posts delivered to you for free!



Post a Comment


Latest From Dividend Growth Stocks

Popular Posts Last 30 Days