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?

Investors should carefully consider the fund's investment objectives, risks, charges and expenses before investing. To obtain a summary prospectus or prospectus containing this and other information, contact us or view the prospectus provided on this website. Please carefully read the summary prospectus or prospectus before investing.
Past performance is no guarantee of future results.
Mutual funds are subject to risks and fluctuate in value.
There are no guarantees that dividend-paying stocks will continue to pay dividends. In addition, dividend-paying stocks may not experience the same capital appreciation potential as non-dividend-paying stocks.
Federated Securities Corp., Distributor
Copyright © 2015 Federated Investors, Inc.

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