Although the economy needs to improve before the Fed raises key rates, some dividend payers might act as good hedges amid higher rates, while others have something to lose, says Morningstar's Josh Peters.
Income investors concerned about heavy government-bond concentration in the Barclays Aggregate Bond Index should consider dividend payers and the bonds of countries with low debt/GDP ratios, says the Princeton professor.
As we're likely to see political squabbles and slow growth continue, investors will be well-served by sticking with defensive firms that have solid dividend-payout records and competitive advantages, says Morningstar's Josh Peters.
Investors shouldn't focus just on yield, but also on other factors, such as dividend growth rates and company familiarity, when considering selling dividend payers, says DividendInvestor editor Josh Peters.
The stocks mentioned in this article be holdings in the managed portfolios of Validea Capital Management, a separate asset management firm founded by Validea.com founder John Reese. Validea Capital Management, which an SEC registered investment advisory firm and a separate company from Validea.com, ...