Buy the Dividend Stocks in an Uncertain Market

Dividend Stocks

Not sure where to put your money? How about Dividend Stocks.

Not sure if you can beat the market with your stock picks? That goes for us all. Why not bet on a few classic dividend stocks or better yet go with the Dividend ETFs.


SPDR S&P Dividend (ETF) (NYSE:SDY) is up 4% YTD and is paying a 3% annual dividend yield. Seems like a no brainer as we know we are heading into a bearish market. Brett Owens at pointed out today:
When interest rates rise, the best defense is a good offense. Research from Nuveen shows that dividend growth stocks outperform everyone else in the 36 months after a Fed rate increase
Rather than stock pick from dividend stocks you can buy the ETFs, namedly the SDY. Your other options are:
  • Vanguard High Dividend Yield ETF (NYSE:VYM)
  • iShares U.S. Preferred Stock ETF (NYSE:PFF)
  • Vanguard Dividend Appreciation ETF (NYSE:VIG) 

Brett does list UPS and GIS has two potential dividend stocks that could be worth your attention. Both stock prices have done terrible YTD but maintain a 3% dividend yield. Perhaps if both stocks can make a comeback it's a lesson in patience.

Going with a basket of dividend stocks using the ETFs named above could be a safer bet.