Are Dividend Stocks Dead?
The U.S. stock market has been a well-oiled money-making machine for decades. Its short-term impulses can be frustrating but tend to be smoothed out over the long term. Those with the patience to tolerate the volatility have turned routine savings into generational wealth.
A key attribute of many great stocks is an attractive dividend, which provides scheduled income no matter what the stock price is doing. But the market's surge has shrunk the dividend yield of the average stock in the S&P 500 to just 1.3%, the lowest level in nearly 20 years. Such a small return reduces the feasibility of supplementing income with dividends -- which used to be a go-to strategy recommended by financial planners. This is especially problematic for retirees who depend on dividend income.
Let's address the elephant in the room -- are dividend stocks dead? And if so, what should investors do about it?
Source Fool.com
