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Barron's Cover Story: 7 Dividend Stocks For Volatile Times Ahead

TedTed
in Fund Discussions
FYI: After a rocky week in the stock market, as a trade standoff with China renewed volatility, shrewd investors might want to play some defense. Bring on the dividend stocks.

“It makes sense to be positioned a little more defensively right now,” says Thomas Huber, portfolio manager of the T. Rowe Price Dividend Growth fund (ticker: PRDGX). “You can make a good case for that. All you have to do is look back at the fourth quarter and see what happened.”

Stocks of companies that pay robust and growing dividends are generally less volatile in times of market turmoil—as was the case in last year’s fourth quarter, when the S&P 500 index lost 13.5%, dividends included. And dividends, especially those that are growing and are well covered by cash flows, can provide steady income in times of uncertainty.
Regards,
Ted

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