Dividends4Life: Should I Buy Dividend Stocks Now, Or Wait For A Market Correction?

I have been sitting on cash and GICs for the past year, waiting for an entry point into the market. Should I start buying dividend stocks now, or am I better to sit on the sideline and wait for true buying opportunities via a market correction? If I had a crystal ball and knew that dividend stocks would rise sharply over the next year, I would advise you to go all-in now. If my crystal ball indicated that stocks are poised for a meaningful drop, I would recommend that you wait for a pullback.

Problem is, I don’t have a crystal ball. Nobody does. That doesn’t stop financial pundits from making predictions about which way the market is heading, but we need to recognize these forecasts for what they are: educated guesses. What I can say with certainty is that by staying in cash and low-yielding GICs over the past year, you missed out on higher returns. For example, had you invested in Canada’s largest exchange-traded fund – the iShares S&P/TSX 60 Index ETF (symbol: XIU) – your return over the past 12 months would have been more than 6 per cent, including dividends. That’s not too shabby, considering the past year included a severe drop in the energy sector.

Source: Globe and Mail

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