Dividend Sectors I Wouldn’t Recommend to My Worst Enemy

So, the Federal Reserve just told us that it has decided it could start “tapering” its bond buying purchases later this year. And while I didn’t think that was much of a surprise, what was a surprise was Chairman Ben Bernanke telling the world during his press conference that quantitative easing could end by mid-2014. That potential chock-off of the printing presses during the next 12 months has traders running for cover, and indiscriminately selling just about every asset class. Stocks, of course, are getting slammed, but so are bonds and so is gold.

For dividend stock investors, the current market milieu means it’s time to treat the sectors and the companies with the greatest exposure to interest-rate risk as an impediment to continued portfolio performance. More specifically, dividend investors will really want to shun sectors that don’t have the ability to raise dividends because of either A) market conditions or B) regulatory constraints. Two sectors that resemble this aesthetic perfectly are real estate investment trusts and utilities.

Source: InvestorPlace

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