After a raucous autumn and a tumultuous election season, many investors are looking to get off the roller-coaster of timing stock prices and looking to play it a little safer by investing in dividend stocks instead. While this is typically a solid way to boost your passive income and get a nice quarterly payout in your portfolio, 2017 could bring some unwanted bumps in the road for dividend stocks. For starters, several indicators point to a rise in interest rates in the coming year.
The Federal Reserve is expected to incrementally raise interest rates, which historically makes bonds more appealing than stocks for investors, and dividend stocks can take a nosedive during periods of bond growth. Also, many economists are forecasting a rise in inflation, another reason to choose dividend stocks very carefully. Weak ones should be avoided. Two dividend stocks in particular provide good examples of dividend stocks that look great on the surface but are too risky underneath the shine to hang on to in 2017: Abercrombie & Fitch (NYSE:ANF) and Windstream Holdings (NASDAQ:WIN).
Source: Guru Focus
Related Articles:
- 7 Dividend Stocks With A Good Yield And Growth Balance
- 3 High-Yield Dividend Achievers With 25 Years of Increases
- 17 Investments That Pay Monthly Dividends
- 5 Dividend Stocks To Build Your Future Security
- 7 Dividend Stocks With A Low Payout Ratio
2 Dividend Stocks That Shouldn’t Fool You
Posted by D4L | Wednesday, January 18, 2017 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
At times like this, it is tempting to jump on a bandwagon and buy up the growth stocks, aiming to capitalize on the broader trends. But is t...
-
In today’s near-zero interest rate environment, it’s been tough for investors looking for yield. There are many high-yielding dividend stock...
-
There are some dividend aristocrats which have not only maintained but increased their dividends for over half a century. Having survived ev...
-
Three high dividend stocks to buy now feature a business development company (BDC), a national real estate investment trust (REIT) and the o...
-
The research analysts at Wells Fargo have been searching the markets for the ‘right’ buys, and their picks bear a closer look. They’ve been ...
-
This past year has been the ultimate stress test for dividend stocks. Some companies failed miserably as they either slashed or suspended th...
-
Dividend stocks are a great choice for investors looking for a regular income stream. The best dividend stocks offer a growing payout in add...
-
The dividend-paying cleaning stocks to buy now amid the COVID-19 pandemic should benefit from heightened sanitary expectations by consumers ...
-
Rather than subject themselves to this risk, savvy investors can stabilize their portfolios by taking positions in reliable dividend growth ...
-
The best dividend stocks can generate excellent long-term returns. Even better, investors can buy high-quality dividend stocks when they are...

0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.