General Motors (GM) scores earnings beat, but big revenue miss >>> READ MORE

10 Best Dividend Stocks for the Market’s 10 Sectors

Diversification matters. So when you're scouring the market for income, don't throw all your money at just one or two sectors.

    View All  

I’ve been a big believer in piling money into the best dividend stocks, then staying there for a long time. Perhaps because the start of my career coincided with the nasty 2000-02 bear market, I’ve always taken the view that capital gains can be ephemeral. But a regular dividend represents realized profit I could hang my hat on.

Sectors
Source: Shutterstock

Or so I thought.

I learned a nasty lesson back in 2008, and it’s one I’ll never forget. I was invested fairly heavily in the iShares Select Dividend ETF (NYSEARCA:DVY) and feeling smug about it. Sure, the market could take a tumble, but my high-dividend stocks would weather the storm better than most, right?

Wrong. During the 2008 meltdown, DVY actually lost more than the S&P 500 despite, in theory, being a “safe” dividend-focused fund.

So, what happened?

It came down to diversification, or rather the lack of it. DVY allocated to the highest-yielding dividend stocks that met its criteria … which meant it was massively overweighted to the financial sector. You can imagine how that worked out for me.

Today, we’re going to approach dividend investing a little differently, picking a solid dividend stock from each of the S&P 500’s 10 industrial sectors. And while 10 stocks isn’t what I’d consider a fully diversified portfolio, this will give you a good head start.

Next Page


Article printed from InvestorPlace Media, http://investorplace.com/2017/06/10-best-dividend-stocks-for-the-markets-10-sectors/.

©2017 InvestorPlace Media, LLC