There’s no doubt that dividend investing has taken on a life of its own in the years since the Great Recession. As the Federal Reserve kept rates in the basement for so long, investors were drawn to anything that provided larger income potential. But with the Fed ratcheting up interest rates, high yield dividend investing has lost some of its luster.
But dividend growth investing could be getting started.
Stocks that regularly increase their payouts often outperform other stocks and, more importantly, tend to fare better in rising rate environments. After all, the average pace of dividend growth has long eclipsed the pace of rate hikes. To that end, dividend growth investing could be the prime play for the months ahead.
And according to a new report, certain sectors are better than others.
Check out our Best Dividend Stocks page.