Dividend stocks have maintained their appeal among the investing community for years. And why not? Stocks that offer consistent dividend yields are generally fundamentally robust and leading players in their respective industries, with a proven track record of operational strength. Additionally, dividends can provide a source of regular income for investors, providing value above and beyond any capital appreciation.
However, dividend stocks aren't any more of a “sure thing” than any other asset class. In fact, amid the growth-fueled stock rally earlier this year, dividend stocks had their worst first-half performance since 2009. Even the most elite and established dividend paying stocks - the Dividend Aristocrats - have fallen on hard times, with the S&P 500 Dividend Aristocrats ETF (NOBL) still in negative territory YTD, while the S&P 500 SPDR has (SPY) gained nearly 15%.
