Dividend investing has never been more popular. And that’s probably why it has never been this misunderstood. Investors flock to stocks for the yield, but they make a very dangerous assumption: that the stock price will go up over time.
Most stocks yield well below what bonds do and carry equity market risk. And in a market focused on the artificial intelligence (AI) trade and not much else, that makes the SPDR Portfolio S&P 500 High Dividend ETF (SPYD) a better research tool for individual stocks than a solid exchange-traded fund (ETF) buy. At least for now.
