When I wrote the book “All About Dividend Investing” for McGraw-Hill, I focused on two widely known benefits of dividend-paying stocks: they have outperformed over long periods of time, and high-yielding dividend-paying stocks tend to have the best performance, especially when market trends turn negative. In this article we’ll further explore the facts and figures that support these notions.
You may have noticed that the market cycle has changed along with the Fed’s monetary policy shift to fight inflation. In a bull market, it pays to focus on capturing return. Bull markets are typically built and become wholly dependent on the Fed maintaining an accommodative monetary policy. Growth, momentum, and tech stocks typically do very well during bull markets.