Dividend assets and fixed-income investing generally provide similar functions to a diversified investment portfolio. Although one might argue that fixed-income has the added benefit of diversification, it doesn’t help diversifying for the sake of it. In fact, I would say that the current state of the bond market dictates a shift away from fixed-income and toward high-quality dividend stocks to buy.
What’s my justification for that mindset? Well, the yield curve and credit spreads are pin-balling around, meaning the outlook for bonds is uncertain. As such, I believe the idiosyncratic risk embedded in dividend stocks is a better option for now. Moreover, many dividend stocks present value amid a sharp drawdown in recent months.
Whether you share a similar view as me or not, here are seven dividend rock star stocks to buy!
This post appeared on Dividend Stocks Research.