Pull up any broad chart and you’ll notice one thing. That is, the markets have been focused on ‘growth.’ So-called growth stocks – and their ability to generate revenues at faster than market averages – have been sought out in the era since the end of the recession. And in that, value stocks have fallen by the wayside.
In recent weeks, as the market has plunged even further, value has only become cheaper.
For dividend investors, this is actually a good thing. Value stocks have long been some of the best dividend payers and dividend growers around. And now with their lower share prices, yields for many top value stocks are even higher than before. With their ability to generate revenues in good times and bad, value stocks and their now bigger dividends could be one of the best plays for the year ahead.
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