High-Yielding Stocks Are Facing Headwinds

Ever since the technology bubble popped in the last decade, it takes little more than a few months of strong performance for a given asset to bring out the hordes of pundits screaming “bubble!” Type “stock bubble” into Google Search, and it brings up 95,500,000 results. “Bond bubble?” You’ll get a comparatively small 41,400,000. Among the more recent asset classes to come into the cross-hairs of the bubble crowd are dividend-paying stocks.

Those who already hold individual dividend-paying stocks such as Coca-Cola (NYSE:KO) or Pfizer (NYSE:PFE) likely do so for the long-term stability, and they probably won’t be swayed by concerns about valuation or fluctuations in the bond market. However, those who are looking to build a broader position in the group via ETFs should realize that high-dividend stocks — while certainly not in a bubble — are facing a set of headwinds that weren’t in place when the rally began back in 2009.

Source: InvestorPlace

Related Articles:
- 5 Basic Materials Stocks With Growing 3%+ Dividends
- What To Do When A Stock Fails To Raise Its Dividend
- A Diversified Approach To International Dividends
- 9 High-Yield Dividend Achievers With 25 Years of Increases
- 7 Dividend Stocks For A Confident And Secure Future