Stick With Dividend Stocks

Since Election Day last week, the S&P 500 has lost 4.5 percent of its value. And the Dow Jones Utility Index is off more than 5 percent. The Alerian MLP Index, meanwhile, has sunk nearly 10 percent, and some of its component parts are down 20 percent or more. Worst hit of all have been stocks yielding 8 percent and higher. Even dividend increases haven’t been enough to stem the tide of selling, while generally robust third-quarter results and sanguine outlooks have been ignored.

The bottom line: The regulatory continuity, targeted tax increases and budget compromise under the Obama administration may not have been what many investors wanted to wake up to on Nov. 7. And this selling may go on as they express those feelings with their portfolios. But none of these policies portend the end of the world, despite what the recent selloff in dividend-paying stocks might suggest. And so long as our companies continue to build value as businesses, they’ll stay on track to build our wealth–as America gets what will largely be four more years of what we had the previous four.

Source: Investing Daily

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