Dividend-stock strategies have long been popular because of the correlation between steady increases of payouts and investment growth. But the low-and-declining interest-rate environment is setting the stage for attractive returns, especially for dividend stocks with value characteristics, according to John Buckingham, the editor of The Prudent Speculator.
In an interview on Aug. 21, Buckingham said investors may have overreacted to the barrage of alarming reports saying the temporary inversion of the two-year and 10-year Treasury yield curve last week. Those comments are below. • Significant long-term total return potential as calculated using a proprietary forward-looking valuation model.
Back in May 2017, Buckingham said millennials were crazy not to be 100% invested in stocks. He may be even more enthusiastic about the stock market now: “Low interest rates are extraordinarily supportive of equity prices. So I love it,” he said. “The 2/10 inversion has not been the biggest predictor of recession. The three-month and 10-year, which have been inverted since March, have been a better predictor,” he said.