On the Dividend Trade, Don't Forget Value

Over the past few years, investors have been enamored with higher-paying dividend stocks. Simultaneously, there has been a pronounced bias toward defensive, lower-volatility sectors and industries. Combining the two trends, the more defensive, higher-yielding niches of the market (pharmaceuticals, consumer staples, telecommunications and utilities) have had very powerful gains since 2011, continuing into 2013.

As the S&P 500 has reached all-time higher ground, led by more defensive sectors in general, the question is whether the focus on dividends, particularly defensive dividends, will continue to provide market leadership....554 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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