“We are near another all time high for total return, even as stocks remain 10.2% off their all time high. We need a 0.14% total return to set a new record, which includes today’s dividends adding .02%. Dividend stocks are still hot, but investors should be looking long-term, not for the moment. Indicated dividend rate up 13.0% from 12/30/2011, 2012 payment estimated to be an all time high. Given the timing of the increases, unless issues decrease their dividends (in which case don’t worry about dividends -> means everything is going down) 2013 already has a +3% payment increase built in.”
…this is a good point but it underscores the importance of not just seeking out good dividend-paying stocks…but good dividend growing stocks. THAT is where the real money is made over time.
For now, I’m a firm believer of investing full-bore into mREITs which amounts to basically nothing more than a carry trade…which I can stomach because “helicopter Ben” is determined to keep short rates low “until 2014″ (which means cheap money for these guys to buy mortgages). The second that gig is up, however, and it’s straight into long-term, dividend growing blue chips (think PG, JNJ, etc) and MLPs.
Until then…happy investing.