Best Defensive Dividend Stocks in 2011

Dividend stocks provide investors with steady income but it comes at the expense of big gains. Small- and mid-cap stocks are riskier but that's justifiable as economic growth accelerates. Such was the case this year, as the Russell 2000 Index has rallied more than 25% while the S&P 500 is up 12%.

Money managers say individual investors are cashing out of bond funds and piling into equities. Some are forgoing dividend stocks to chase the performance of this year's high-flyers -- perhaps a year too late. "So many people want to hear about what's really hot," says Philip Tasho, chief investment officer of TAMRO Capital Partners. "If you're talking about the average investor, you don't want to be chasing trends. Don't just buy the latest and hottest trends. Look for the most attractive value, which is definitely large-cap dividend-paying stocks."

Source: TheStreet.com

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