Why Dividend Stocks Are Not a Separate Asset Class

Fellow dividend investor Dave Van Knapp posted an interesting article explaining why dividend growth stocks could be seen as a separate asset class.An asset class is a group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same laws and regulations. The three main asset classes are equities (stocks), fixed-income (bonds) and cash equivalents (instruments). Some investors also classify real estate and commodities as a separate asset class.I certainly disagree that dividend stocks are a separate asset class. To say that dividend stocks are a separate asset class is similar to saying that growth stocks are a separate asset class as well. As I explained in a previous article, dividend stocks are equities and not a separate asset class.As a dividend investor, I benchmark my performance against S&P 500. I also benchmark my total return performance as well as the... Read more