Dividend Stocks To Buy On The Dip

As Wall Street prepares for the Federal Reserve to slow down, or taper, its monetary easing, a shift is taking place as traders move out of dividend-paying stocks. It is easy to understand why this is taking place. With the Federal Reserve keeping interest rates near zero, and aggressively buying mortgage backed bonds, traders have been forced to turn to the stock market for yield, but that may not be the case for much longer.

Instead of viewing the current trend as a reason to dump dividend stocks, we view it as a buying opportunity in some high-quality dividend-paying stocks that have been knocked down unfairly in recent weeks: Telecom giant AT&T (T) has recently hit some selling pressure; Pharmaceutical giant Pfizer (PFE) was enjoying a strong run until the end of April; California-based oil company Chevron (CVX) is another dividend-paying stock that has run into a little trouble as of late; Altria Group (MO) ran into trouble the last two weeks in May and Johnson & Johnson (JNJ) has lost 3.6% during the last two weeks.

Source: Market Intelligence Center

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