Muni Defaults Higher Than Expected, Buy "Dividend Aristrocrat" Stocks

While it will only get worse for those holding municipal bonds due to economic growth falling and unemployment rising for the United States in the future, the same period will reward those owning shares of "Dividend Aristocrats." These companies constitute the "...S&P 500® Dividend Aristocrats index measures the performance of large cap, blue chip companies within the S&P 500 that have followed a policy of increasing dividends every year for at least 25 consecutive years."

No way to understate defaults in that group as the dividend income is either raised annually for at last 25 consecutive years, or it has not. Since 1989, the Dividend Aristocrats have return 12.05% annually against an S&P 500 return of 9.82%. In addition to the higher gains, there have been less variable returns with a 15.11% standard deviation posted against the annual returns of 18.67%.

Source: Motley Fool

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