Dividend logo

Investing in stocks is a long-term game. The idea is that over the long haul, economic growth and continued progress spur stock prices higher. That’s because better economic growth signals higher earnings and revenues. Therefore, this leads to higher valuations for stocks. In the short run, it’s anybody’s guess. Thinking long term, there is a sort of correlation between gross domestic product (GDP) and equity prices. The economy expands and stocks tend to rise.

This is a bit troubling considering some growth forecasts for the world.

Several analysts are now predicting slowing growth in the near and long term. We’re talking about two decades worth of slowing expansion. With global growth potentially stalling for a while, returns for stocks could be hit hard. However, for investors, dividend stocks could provide the answer to malaise.

Be sure to check out Dividend.com’s investing ideas center to learn more about dividend strategies.

To read the Full Story, Go Premium or Log In

Popular Articles

News

Hershey Co, Discover Financial Services and Expedia Group Increase Dividend

Each week, stocks, funds and REITs announce upcoming dividend payouts. Track how your portfolio’s...

News

Johnson & Johnson, S&P Global and Equinix Go Ex-dividend This Week

There are many securities going ex-dividend this week starting Monday, August 19. For income...

Premium Stock%20market%20index%20going%20down
News

The Market Wrap for August 16: The Signs Start to Flash Red

This week, traders were faced with a continuing deterioration in the global economy. Worries in...