Brocker.Org: RBC tells customers to stick with dividend stocks, names 10 inexpensive dividend plays


Opposite to popular belief that dividend stocks underperform throughout durations of mounting yields, RBC Money Marketplaces on Monday debunked those assumptions, advising investors to stick with dividend payers.

“Even though lots of would hope significant dividend approaches to lag in these kinds of an natural environment, the opposite has been the case. In reality, history reveals that lower-volatility names — not significant yielders — are really the massive underperformer as premiums rise,” RBC’s main equity strategist, Jonathan Golub, wrote in a analysis be aware.

Examination by Golub reveals that since the U.S. presidential election, dividend payers are up 2 percent when compared with a unfavorable return of 10 percent for lower-volatility names.