In the first quarter, we witnessed a market shift back to higher-beta technology, growth, and small-cap stocks as investors searched for higher potential profits. Yet while this investment strategy makes sense, you also need to make sure your portfolio is diversified across numerous sectors and stocks with varying market caps, including dividend-paying stocks.
Dividend stocks may not have the upward explosiveness of smaller technology stocks or the large-cap momentum stocks like FaceBook, Inc. (NASDAQ/FB), Twitter, Inc. (NYSE/TWTR), and Netflix, Inc. (NASDAQ/NFLX); but you know the large-cap blue-chip dividend stocks found on the Dow Jones Industrial Average and S&P 500 offer long-term confidence for investors.
Whether you are starting out on your investment plan or are a seasoned investor, you should always have some funds stashed away in these safer and proven dividend stocks. I would rather play my safe money in the blue-chip dividend stocks than bonds in the long-term.
Proven Dividend Stocks to Watch
When I talk about the proven long-term dividend winners, I’m talking about the likes of Wal-Mart Stores, Inc. (NYSE/WMT), The Procter & Gamble Company (NYSE/PG), and Colgate-Palmolive Company (NYSE/CL). Take a look at their long-term charts, and you’ll see what I mean. These companies sell goods that are always needed by consumers, whether in good times or bad. They also have the financial resources to withstand economic weakness.
In cases when there have been operational issues with these dividend stocks, they generally have been able to pull out of it and rally. Two such companies that faced major issues but managed to subsequently recover are McDonald’s Corporation (NYSE/MCD) and General Electric Company (NYSE/GE). If you … Read More