Dividend Growth Portfolio—An Investment Strategy in a Volatile Stock Market
In Jim Puplava’s Big Picture: Forecast 2016 , [1] his prediction for year 2016 is that 2016 will be similar to 2015 except with much higher volatility. To invest in a high volatility market, one strategy is investing in dividend-growth stocks. In this article, we will touch upon the following topics: Advantages of dividends How to find trustworthy dividends How to spot risky dividends Investment ideas Table 1. Dividend Growth Stocks Outrun the Competition Over Time Source: Ned Davis Research Advantages of Dividends The advantages of dividends include [3,25] Provide a steady stream of income This income is steady and dependable Dividends on most stocks are paid every quarter. The income provides a return you can count on regardless of stock market conditions or price fluctuations. Provide an inflation hedge These dividends can increase over time providing investors with a greater source of income and an inflation hedge . You don't get this with a ...