It’s true that market timing may be a fool’s errand. Trying to perfectly enter and exit stock positions for most doesn’t work. But that doesn’t mean that we can’t take advantages of economic cycles to potentially boost our returns. The so-called business cycle of expansion and contraction has long been a great way to plan for portfolio construction across various sectors and asset class.
And these days, dividend investors should be smiling from ear to ear.
As the economy has continued to grow, data is now suggesting that we’ve officially moved towards the late stages of the cycle. This is great news for many traditional dividend-focused sectors. Many have historically done well during the late stages of economic growth. In the end, the combination of cash payments and capital appreciation could make for some great total returns over the next few quarters.
Learn more about the business cycle here.