The end of 5-per-cent returns from GICs and similarly safe products has started the revival of downtrodden blue-chip dividend stocks.The report says about $220-billion was diverted away from high-yielding dividend stocks in the past couple of years by guaranteed investment certificates, investment savings accounts and high interest savings exchange-traded funds.
Each of the above-mentioned stocks was up between 6.5 and 8.5 per cent for the past 30 days. Even so, yields remain between 3.7 per cent for Rogers to 6.9 per cent for Enbridge. With inflation at 2.5 per cent and expected to decline, dividend stocks in defensive sectors like pipelines and utilities have some appeal.
Some thoughts for investors who want to capitalize on further gains by once-downtrodden dividend stocks: Consider a low-volatility ETF: Low-vol funds tend to have high concentration in sectors like financials, consumer staples and utilities.