Dividend Kings are not always a good buy. While they are always good to hold, cyclicality can boost valuations and depress yields, setting the stage for poor returns long-term. The trick is finding these stocks when they’re down or, even better, in the midst of rebounding.
Dividend Kings in this position provide attractive valuations and yields that can produce market-beating total returns over time. Total returns matter most for retirement accounts because they truly measure wealth building, including capital appreciation and dividend income. In this scenario, savvy investors use those dividends to compound their positions and accelerate annual returns.
