With the sovereign debt problem in Europe, slowing growth in China and the U.S., investors need some kind of protection in their portfolios. Dividends have proven to be a strong source of protection against capital loss, as investors are more likely to flow to names that have strong dividend yields then those with higher growth potential in a recession.
Having companies in emerging markets is also beneficial, as these countries are still growing, albeit less then they were previously. Investors want as much growth in their portfolios as possible, and if the stocks offer solid dividend yields, that is the icing on the cake.
Source: WebWire
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Posted by D4L | Tuesday, October 11, 2011 | ArticleLinks | 0 comments »________________________________________________________________
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