The dividend run is not over, and these stocks are positioned to pay
I’m the lucky dad of teenage boys. Financial markets remind me of teenage boys: brilliant, rewarding, inspiring at times and other times frustrating, erratic, and just plain stupid. I’ve found the key to dealing with both is consistency, clear objectives, and conviction.
And although many market observers may describe the language of the Federal Reserve as vague and obtuse, I’m starting to think that Dr. Yellen and Company share my “the market as teenage boy” philosophy. They want rates to return to some form of normalcy, but the economic conditions must warrant the action first.
They waited and waited before finally taking action in December 2015, raising the base federal funds rate a quarter of a percent. This signaled a desire to return to more realistic interest rates while reiterating that it will be an exceedingly long process to get back to their target rates.
And the market, like a teenager, pouted as the S&P 500 pulled back 11% from December 2015 to February 2016.