Dividend investing primed for a comeback
During volatile times, investors should consider adopting a more defensive approach and focus on established companies with a track record of generating steady revenues.
Add BT as a preferred source
LATELY, equity investors have had plenty to think about. Unresolved trade tensions, slower earnings growth and a late-cycle US economy suggest that market turbulence could be on the rise.
This could present a great opportunity for dividend-focused investing, which has been under pressure ever since the US began to raise interest rates in 2015. Dividend-focused investing may be poised to make a comeback as investors seek to "smooth out the ride" in volatile markets.
One of the most important year-to-date market developments has been the US Federal Reserve's decision to halt its interest rate hikes. Adopting a more dovish monetary policy stance could potentially extend the decade-long US economic expansion, although it does not change the fact that many economies are currently in the late stages of the cycle.
Copyright SPH Media. All rights reserved.
