A stock dividend is something tangible – it’s not an earnings projection; it’s something solid, in hand. A stock dividend is a true return on the investment. Everything else is hope and speculation.
Dow Theory Letters author Richard Russell might be onto something with that quote.These days, stocks seem to be trading with a mind of their own. Earnings and revenue estimates appear to be all over the place as analysts try to quantify all the uncertainty in the world. And there certainly is a lot of it. From conflicts in the Middle East and geopolitical concerns in Europe to slowing economic data here at home, the world’s economy isn’t exactly a slam dunk these days. “Cautiously optimistic” remains a rallying cry for many traders and analysts, which has produced plenty of volatility, large swings and potentially higher-than-historical valuations in many pockets of the market. And the companies that get it wrong are being punished severely.
But the solution for financial advisors and their clients lies within Russell’s quote. Dividends are something tangible. In the current environment, that cash payment is exactly what portfolios need in this day and age. It’s getting harder to value stocks, and returns may not live up to the hype. And yet, receiving a steady cash payment from a portfolio’s holdings can do wonders for returns.
Which is why, here at Dividend.com, we’re proud to announce our new special report designed to help investors choose the best mutual funds for their income needs. Our report brings you profitable dividend insights from the best-performing dividend-focused mutual funds and their top holdings. The report is based on our proprietary-ranking methodology and in-depth analysis that identifies the fund managers with stellar track records over the last year, and their “secret sauce” top holdings driving total returns. Investors can either own these mutual funds outright or pick from their winning holdings.
