Dividend stocks could be poised to get their moment in the sun as interest rates fall – and investors only need to take a simple step to boost their long-term returns in these positions.
"As rates fall, we might see people looking for longer-term alternatives and, in turn, dividend-paying stocks," he said.
For starters, it's a form of dollar-cost averaging into a position, meaning you're buying the stock at regular intervals regardless of the price.
"It allows them to reinvest this dividend on a regular scheduled timeframe and have a great opportunity for a larger total return over the long term."
The ProShares S & P 500 Dividend Aristocrats (NOBL) has a total return of nearly 15% in 2024 and an expense ratio of 0.35%.
Persons:
Dan Stein, Charles Schwab, Jay Spector, That's, would've, you'll, Stein, – CNBC's Chris Hayes
Organizations:
Federal Reserve, Investors, CFP, EverVest, Machines, IBM, Target Corp, Apple, Broadcom, Microsoft, Exxon Mobil, Internal Revenue Service
Locations:
Tysons Corner , Virginia, Scottsdale , Arizona