Dividends have long been a great way for investors to boost their income, reduce volatility/drawdowns, and generate strong total returns. It’s true that reinvested dividends have been one of the reasons why equities have been one of the top dogs over the long haul versus other asset classes. But lately, dividend stocks have failed to hit the mark.
That is, U.S. dividend stocks have not been up to par.
Thanks to a variety of factors, such as high interest rates, rising trade wars, and slipping economic growth, international dividend stocks are starting to pull ahead of their U.S. rivals. With many of these factors now becoming permanent trends, the time to allocate more assets to international equities and their dividends could be at hand.