I always enjoy seeing dividend investing articles in the news, especially when the article offers a buying opportunity for dividend investors.
I own shares of DVY for my Roth IRA and I’m not overly worried about the share price lagging the broader market, as the article references.
I am re-investing the dividends from DVY and I am glad to be able to buy more shares with my dividend payouts during my accumulation phase (the time between now and when I begin to need the funds for income).
At some point, investors will be seeking more income producing stocks and we will be there to cash in as the demand for dividend stocks and therefore the Dividend ETFs rise. I have previously written about my thoughts on why we should buy dividend stocks now.
I believe that it will be in the not too distant future when the baby boomer generation will be seeking to add dividend growth stocks to their portfolio in order to hedge their retirement funds against inflation. This generation is living longer than expected and cannot survive on just bonds that offer no chance for capital growth or inflation hedged income.
So, when you see articles that mention lagging dividend stocks or dividend ETFs, let that be a buy signal and not a signal to jump ship and chase performance. I’ve tried chasing performance and it seems that when I did, I was always late for the party.
Buy stocks and ETFs that increase their dividends and start your own party!
Disclosure: Long DVY