For Dividend Stocks, Buy American

For dividend investors, the U.S. market is especially attractive right now, according to strategist Vincent Delisle at Scotia Capital in Montreal. With memories of the market meltdown still fresh in their minds, many investors are gravitating to the perceived safety of government bonds, corporate bonds and dividend-paying stocks.

"Consequently, we believe capital allocation decisions [by companies] will be biased toward dividend increases in coming years,” he said in a note to clients. “Dividend increases should also get the best reception from investors, with equity sentiment at decade lows.With corporate balance sheets improving and cash piles stacking up, share repurchases, consolidations and dividend increases should reduce the risk of considerable equity downside in coming months,” he said.

Source: Globe and Mail

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