Compared with other investments, the income consistency that dividends provide on a pretax basis allows them to retain their value and practicality even if tax rates increase, says Morningstar's JoshPeters .
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 JoshPeters .
Since the taper talks began, conditions have improved for dividend investors, who can now buy quality names without being vulnerable to long-term interest-rate spikes, says DividendInvestor editor JoshPeters .
Although their returns have fallen short of the S&P 500's this year, several stock sectors, with their yields and defensive qualities, are offering bargains today, says DividendInvestor editor JoshPeters .
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 JoshPeters .
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