3 Dividend Stocks to Buy on Sale

Until this week, the broad market had generally been plowing deeper into new-high territory. But take a closer look at the advances and you'll see the rally since October has been an oddly imbalanced one. Growth-oriented companies have performed considerably better than value names, and a handful of the very biggest names have done the lion's share of that bullish work.

Dividend stocks have been particularly poor performers, with the SPDR S&P Dividend ETF (NYSEMKT: SDY) trailing the S&P 500 (SNPINDEX:^GSPC) by quite a bit over the course of the past year. Aside from this week's downturn, the all-inclusive index was up 20% for the past 12 months, versus a gain of less than 9% for the dividend-oriented ETF. Investors just aren't interested in income right now.

As veteran traders will attest, though, nothing lasts forever. It might not be a bad idea to start adding exposure to the market's laggards that have become undervalued of late. And, it may also be smart to scale back a bit on the big winners, some of which may be ripe for profit-taking.

Continue reading

Source Fool.com