Is the Dividend Trade Dead?

Dividend shares have had a great run, but that run may be over. In recent weeks, high dividend-yield sectors have lagged the broad market. In the current quarter, for example, the S&P 500's Utilities sector has lost nearly 4.5%, against a 4% gain for the index as of June 4. Why are high-yielding shares falling out of favor and what should investors do about it? For an answer to both those questions, watch the following video from Fool contributor Alex Dumortier and leave your comments below.

There's no question Annaly Capital's double-digit dividend is eye-catching. But can investors count on that payout sticking around? With the Federal Reserve keeping interest rates at historically low levels, Annaly has had to scramble to defend its bottom line. In The Motley Fool's premium research report on Annaly, senior analysts Ilan Moscovitz and Matt Koppenheffer uncover the key challenges the company faces and divulge three reasons investors may consider buying it. Simply click here now to claim your copy today!


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Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On June 06, 2013, at 12:44 PM, andyjpm wrote:

    Invest in AGNC and hold, put a stop loss order in around 23 and you will be fine. This is what I have been told to do. I bought the stock around 17 and the dividends it has paid me back are around 24 a share. I am buying more shares. Had I listened to advice from people who told me REIT were never going to last, I would have lost a great deal of money!

  • Report this Comment On June 07, 2013, at 10:37 AM, DESERTKAT42 wrote:

    Dividend stocks are still the way to go for the common investor who has neither the time nor the knowledge to invest himself. But for those of us that do it on a daily basis and for the big money pools such as mutual funds they are indeed a second choice. Obama care with it's 42% tax on ALL dividend income has seen to that. (Thank you for electing him TWICE) It comes down to a choice between 42% tax on dividend income and 35% tax on capital gains. Which would you choose?

  • Report this Comment On June 26, 2013, at 12:08 PM, TMFAleph1 wrote:

    @andyjpm

    With a stop loss order in around 23, you would have been stopped out last Friday.

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