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Dividend-Paying Stocks

Improving economic fundamentals should support rising equity prices. But when the increasing need for income intersects with a potentially more volatile environment, a dividend-focused strategy is worth a closer look. With their historic contribution to total return and ability to provide a consistent income stream, dividend-paying stocks have the potential to play a key role in meeting long-term income needs.

What are the potential benefits?

  • Dividend growth historically has kept up with most inflation environments.*
  • Dividends may help to offset negative returns during down markets.
  • High-quality, high-dividend-paying stocks have outperformed during previous rising-rate periods.*

*Sources: Ned Davis and Bureau of Labor Statistics. 

What does Federated offer in this category?