I have to admit that I’m a little nervous about dividend stocks.
Everybody and their grandmother has been on the hunt for yield for several years, and I think that’s one of the reason the market keeps moving higher. Investors left the bond markets, which are much larger than the equity markets, and have crept further and further out onto the yield curve, edging towards those higher and higher yields.
I just wonder when they’ll fall off, sending dividend stocks crashing.
To that end, I’m becoming more and more careful about dividend stocks and REITs. I’m trying to stick to safer bets that still pump out nice yields and aren’t exposed to large systemic risks, or ones that may have strong capital gains potential.