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There’s a certain discipline required of the stock investor whom adheres to a dividend-centric investment strategy. It’s not for the FOMO (fear of missing out) crowd that talks up their latest stock heroics at cocktail parties—a never in doubt but often wrong crowd if I’ve ever seen one.
At the end of the day, it’s the dividend investor whom usually has the last laugh. Looks like a truckload of cash from the recent tax cut will be paid out in the form of dividends.
Young Research’s Retirement CompoundersSM Portfolio, a dividend-centric stock portfolio, has outperformed the DJIA and the S&P 500 since its inception in 2003.
Jon Sindreu writes in The Wall Street Journal:
In a year of rising interest rates, resurgent stock volatility and creeping political risk, many investors are taking solace in dividends.
An unsettled market outlook means companies’ capacity to deliver cash—in the form of share buybacks and dividend payments—is of key importance for shareholders.
Global stock indexes in 2018 have failed to follow on their strong performance a year earlier, despite continued economic growth. The S&P 500 and Dow Jones Industrial Average are up 1% in the year to date, while overseas the Stoxx Europe 600 is down 2.6% and Japan’s Nikkei Stock Average has lost 4%.
With U.S. firms flush following a big tax cut in the middle of a nine-year economic expansion, and European economic fundamentals looking better than they have for the best part of a decade, investors are increasingly willing to count on corporate largess to generate better returns.
Read more here.