Beware! This Surprise Lurks in Wait for Dividend Investors
The Dow Jones Industrials (DJINDICES: ^DJI) are headed toward another winning year. Yet conservative investors worry that after nearly nine years of strong bull market returns, a substantial correction in the stock market is long overdue. Dividend stocks have a reputation for offering protection against bear markets, giving investors the promise of reduced volatility as well as paying shareholders income along the way.
Yet just because dividend stocks can be smart long-term investments doesn't mean that they're able to withstand major market downturns unscathed. A look back at the results of the popular Dogs of the Dow strategy shows how even a largely successful method of investing won't necessarily save you from the next bear.
Image source: Getty Images.
Source: Fool.com
