You should be buying dividend stocks

Dividend-paying stocks are the ideal investment choice right now, CIBC World Markets said in a report Friday. The investment-advisory branch of Canadian Imperial Bank of Commerce said these are the kinds of stocks that this year led the Toronto Stock Exchange to its best September in 14 years, and the U.S. stock market to its strongest gains for this particular month in 71 years.The report said dividend-paying stocks will be the ideal investment “for some time.”

“That leaves equities as the refuge from the low-growth, low-return environment,” Avery Shenfeld, chief economist at CIBC, said in the report. “Reliable dividend-paying equities stand out in a non-recessionary but slow-growth world. Cashing dividend cheques, as opposed to paycheques or bond coupons, may be the best way to make some money when others aren’t.” CIBC said dividend stocks historically perform well in times of slow economic growth and low inflation — as is the case now.

Source: Financial Post

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