Interest rates have started creeping up over the last few weeks … everyone from former FDIC head Sheila Bair to folks at the International Monetary Fund are now warning that we could see serious financial problems dead ahead … and our own team now believes the Federal Reserve’s 25-year monetary experiment comes is about to come to shocking close. So given all that, I want to start talking about how this situation might affect some of the investments and strategies I favor. Let me start by saying that higher interest rates should be great news for conservative investors and savers. They will finally allow us to get fair returns on our money without requiring larger-than-normal risks. At the same time, there is no doubt that lots of portfolios are going to get crushed along the way.
I believe bond investors have the most to fear, and I have been saying so for quite some time now. But I won’t pretend that dividend stocks are entirely immune. This is precisely why I have been preparing my Income Superstars subscribers for months now — especially when it comes to utility stocks. Utilities are the stock market sector that gets hit the hardest by rising interest rates. One last thing to remember is that quality dividend companies — including utilities — have the ability to continue increasing their dividend payments as time goes on. So even if they get hit as rates jump, they have the potential to hand out ever-increasing streams of income over the long-term.
Source: Uncommon Wisdom Daily
Related Articles:
- 5 Low P/E Value-Stocks, Yielding 2% Or Higher
- How Much Money Will You Need To Retire?
- Seeding A Forest Of Dividend Growth Stocks
- 7 Stocks With A Strong Cash To Dividend Coverage
- Optimizing Your Asset Allocation
How will dividend stocks fare as rates go up?
Posted by D4L | Monday, July 06, 2015 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
Dividend Growth Stocks News
~
Popular Posts Last 30 Days
-
If you're worried about inflation rearing its ugly head next year, you should probably worry about more likely catastrophes, such as bei...
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
We screened our 24/7 Wall St. dividend equity research database and found 5 stocks that combined can generate over $3,000 of annual passive ...
-
The stock market has been on an upward path of late, with some of the most prominent stocks hitting astronomical highs. The dividend yield o...
-
Dividend growth stocks can be incredibly attractive investments if you crave recurring income. As these types of stocks raise their dividend...
-
In my opinion, there are three criteria investors should consider when evaluating a particular stock for their portfolio. The first is histo...
-
Dividends can be a tremendously powerful part of your investing strategy. Not only can they give you a continuing source of cash to reinvest...
-
In this article, we discuss 5 best March dividend stocks to buy. If you want to read our detailed analysis of dividend capture strategy and ...
-
As the broader stock rally broadens to some of the more “boring” corners of the market, it’s the higher-yielding dividend plays that could s...
-
Double your money in a short time. Few investors would walk away from such an opportunity. Of course, there's no guarantee that any inve...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.