Q2 2024 dividend investing outlook – Don Newman FidelityConnects

Today on the show, we welcome dividend investor Don Newman. Don gives an update on the dividend landscape noting that dividends are currently thriving in the economy and where he sees them heading in the next few months. Don notes stability in the economy has led to most companies being in good financial standing. Interest rates remain sticky plus the number of expected rate cuts have reduced leading to a more favourable market sentiment. Don suggests this has also led to a Goldilocks scenario where the economy remains stable, inflation decreases slightly, and the stock market benefits. He adds historically low interest rates have punished savers, forcing them into riskier investments for higher returns. However, dividend stocks remain attractive, especially during rate cuts, as their yields remain stable or even increase over time.  As rates decrease, dividend yields become comparatively more attractive than other investment options. Don says this trend is expected to continue, making dividend stocks a promising choice for investors.
 
Recorded on April 9, 2024.
 
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