Can Dividends Help Retiree Investors Avoid That Sinking Feeling?
A Note about Risk: The value of investments in equity securities will fluctuate in response to general economic conditions and to changes in the prospects of particular companies and/or sectors in the economy. Small-cap and mid-cap company stocks tend to be more volatile and may be less liquid than large-cap company stocks. Small-cap companies also may have more limited product lines, markets, or financial resources and typically experience a higher risk of failure than large cap companies. Mid-cap companies typically experience a higher risk of failure than large cap companies. No investing strategy can overcome all market volatility or guarantee future results.
Dividend policy: A stock is classified as a dividend payer if it paid a cash dividend any time during the previous 12 months, a dividend grower if it initiated or raised its cash dividend at any time during the previous 12 months, and a non-dividend payer if it did not pay a cash dividend at any time during the previous 12 months. Dividends are not guaranteed and may be increased, decreased, or suspended altogether at the discretion of the issuing company.
The examples presented are hypothetical and are intended for illustrative purposes only and are not intended to be reflective of actual results.
Market forecasts and projections are based on current market conditions and are subject to change without notice.
The S&P 500® Index is widely regarded as the standard for measuring large cap U.S. stock market performance and includes a representative sample of leading companies in leading industries.
S&P 500® Dividend Aristocrats® measure the performance S&P 500 companies that have increased dividends every year for the last 25 consecutive years. The Index treats each constituent as a distinct investment opportunity without regard to its size by equally weighting each company.
Indexes are unmanaged, do not reflect the deduction of fees or expenses, and are not available for direct investment.
Neither diversification nor asset allocation can guarantee a profit or protect against loss in declining markets.
The opinions in Market View are as of the date of publication, are subject to change based on subsequent developments, and may not reflect the views of the firm as a whole. The material is not intended to be relied upon as a forecast, research, or investment advice, is not a recommendation or offer to buy or sell any securities or to adopt any investment strategy, and is not intended to predict or depict the performance of any investment. Readers should not assume that investments in companies, securities, sectors, and/or markets described were or will be profitable. Investing involves risk, including possible loss of principal. This document is prepared based on the information Lord Abbett deems reliable; however, Lord Abbett does not warrant the accuracy and completeness of the information. Investors should consult with a financial advisor prior to making an investment decision.