Will Rising Rates Derail Dividend Stocks? (Video)

A rising-rate environment has historically led dividend payers to underperform, but that is no reason to abandon these high-quality companies, says Morningstar's Josh Peters. My look back at rate cycles over the last 20 years did come up with some pretty predictable results, which is that you see a pattern that higher-yielding stocks and higher-yielding sectors within the market tend to underperform a broad market benchmark like the S&P 500 when interest rates are rising. And I used for that reference the 10-year Treasury yield that goes up more than 1 percentage point from the bottom.



Source: Morningstar

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