Weathering Market Risk With Dividend Stocks

Planning for retirement is like driving Route 6. You have a long way to travel and many great memories will be made along the way — but you can’t reach your destination without a well-thought-out plan. I know from going through this process with my financial adviser that retirement planning can be a rewarding activity, but there is a lot for you to consider. In this blog series, I’m going to focus on three of those considerations — market risk, income needs and longevity — and examine why dividend-paying stocks are an important asset class to consider for navigating these potential road blocks and helping to fuel your retirement journey.

Stocks that have initiated or grown their dividends have historically been less volatile than non-dividend-paying stocks. This chart shows the historical beta of S&P 500 Index stocks, based on dividend policy, relative to the index as a whole. Data is shown over the rolling 10-year period ended Jan. 31, 2015. Ultimately many investors want a smooth ride during their retirement road trip, and I believe dividend value investing can serve as a conservative base to your retirement portfolio, helping to temper the bumps along the way. Invesco’s Dividend Value Team oversees $12B in assets for shareholders and manages two distinct approaches.

Source: ValueWalk

Related Articles:
- Searching the World For The Best Dividend Stocks
- What's Your Retirement Vision?
- Stock Dividends - The Gift of Nothing
- What's More Powerful Than Compound Interest?
- Dividends vs. Stock Buybacks