If there’s any indication that investors are still skittish about the markets, let this example add fuel to the fire. The following graph charts the popularity of Google searches for the phrases “dividend stocks” (blue line) and “hot stocks” (red line) from 2005-2013.
Is anyone surprised that investors are apparently flocking to what they perceive to be “safer” stocks, rather than seeking out the next big thing? Probably not, given the turbulent state of our markets. The problem is: dividend stocks, especially those that are offering a high yield, may not be as safe as you think they are.
Read more in our current newsletter.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. The payment of dividends is not guaranteed. Companies may reduce or eliminate the payment of dividends at any given time. Stock investing involves risk, including loss of principal.