The Rally In High Dividends Is Just Getting Started

Seeking AlphaDividend IdeasThe Rally In High Dividends Is Just Getting StartedDec. 5, 2020 9:35 AM ET|| Includes: DIA, IWD, IWF, IWM, QQQ, SPYby: Rida MorwaRida Morwa High Dividend OpportunitiesThe #1 Service for Income Investors and Retirees, 9-10% dividend yield.SummaryCash inflows into the market are driving it to new highs.
However, high-dividend "value stocks" missed the original rally, and now are seeing their best performance in two decades.
Interest rates are set to remain low near zero until the year 2023 at least. The hunt for yield will only accelerate.
This market rally is just getting started. Dividend stocks remain super cheap.
Now is the time to lock-in high yields for the long term.
Co-produced with Treading Softly
It's the holiday shopping season. People are opening their wallets all over the world to buy gifts for friends, family, and loved ones. I know some of you put those last two categories together, but since not everyone does I'll keep them separate!
Stores may not be bustling to the same degree as is historically normal, but the market is not taking a break. What's great about the equity markets is that they are a forward-looking mechanism. For the markets, the COVID-19 pandemic is a thing of the past. Smart investors are seeing the economy re-opening, people traveling, on cruise ships, going to malls, restaurants, and theaters. Things will get back to normal.
Another positive factor not to be discounted: More stimulus and aid packages by Joe Biden's administration are expected. Infrastructure spending will get a boost to move the economy to pre COVID-19 growth levels. The markets are telling us that it's well beyond the pandemic. This is why we are seeing this kind of strong momentum.
Data by YChartsOnly A Handful of Stocks Led the Markets Higher
After a tumultuous spring, the three major indexes have all entered strong positive returns for the year. The concentration of the indexes is at an alarming... Read more