Updated Friday, October 31, 2014 as of 8:58 AM ET

Are Dividend Stocks a Separate Asset Class?

Should dividend stocks be treated as a separate asset class?

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Comments (3)
Dividend stocks are still equities, and in bear markets, they also go down. In 2008-09, with the S&P down over 40%, dividend payers fell on average over 30%.
Vanguard Dividend Payers, VYM, fell almost 34%.
In my opinion, it is part of the equity allocation.
If you want negative correlation, you need to look at bonds.
Posted by Barry R | Friday, December 13 2013 at 8:43AM ET
This is misleading. The serious academic studies conclude that, without hindsight, you will do no better picking high dividend payers than you will by picking low dividend payers. Your "evidence" above only "confirms" your theory because it is retrospective. Companies that do better will, on average, have paid high dividends after the fact. Serious studies look at a point in time, identify the high payers at that time, and see if they did better than low payers after that point in time. On average, they do no better. Please, think critically about what you publish.
Posted by Rick W | Friday, December 13 2013 at 11:25AM ET
Question, "Should dividend stocks be treated as a separate asset class?"

NO....
Posted by Bruce B | Friday, December 13 2013 at 1:54PM ET
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