Why Investors Are Flocking Back To Dividend Stocks

Chris Preston: Stocks have been on a furious run the last few weeks. And dividend stocks have led the charge. Here’s why that trend should continue. A month ago, investors were abandoning stocks as if they were jumping out of a rowboat before a tidal wave hits. Now stocks are back at all-time highs. The rush back to stocks was fast and furious. The rush back to dividend stocks was even faster.

The Federal Open Market Committee recently hinted at finally raising short-term interest rates from near zero, perhaps as early as next summer. As I wrote last week, it’s dangerous to read too much into what the Fed says or means in its phrasing of certain words. Even if the Fed does raise the federal funds rate as early as next summer, that’s no reason to get rid of your dividend stocks just yet. It’s only November. Fortunately, most investors don’t seem to be in much of a rush to dump their dividend stocks. Just the opposite, in fact. Some of the most prominent dividend payers have been on fire in recent weeks.

Source: ETF Daily News

Related Articles:
- 8 Dividend Stocks With A 15% Yield In 15 Years
- First Quarter 2014: Top And Bottom Performing Dividend Stocks
- Don't Touch These 5 Dividend Stocks!
- 7 Dividend Stocks Headed In The Right Direction
- Who Owns The Top Dividend Stocks?