Check the headlines these days and you’ll notice one thing: Value stocks are back in vogue. For a variety of reasons, investors are passing on so-called growth/momentum stocks and are once again turning toward value to drive gains in their portfolios. While the battle between the two investing styles has raged for decades, dividend investors do have a dog in this fight. And it’s squarely in the value camp.
Over the long haul, much of the “value premium” and its market-beating returns has come from dividends. Numerous academic studies have backed this up, showing that an investor’s focus on value with a hefty side of dividends is key.
But what exactly is a value stock and why should dividend investors care in the first place? How do we go about choosing the right stock to fit the definition? Read on to find out.
Our Best Dividend Stocks List has 20 of the highest-rated stocks by our proprietary rating system. Go Premium to find out the entire list.
