Deep Dive: It’s not too late to buy dividend stocks

Income-seeking investors have long had a difficult time, given that interest rates have been so low for so long. And with bond yields falling even more this year than many people thought possible, the resulting flight to yield and safety has pushed prices of many dividend stocks to lofty levels.

But it’s still not too late to consider dividend stocks — if you really need the income.

Here’s what’s alarming some investors:

S&P 500 Sector Price change – 2016 through Aug. 5
Telecommunications 19.6%
Utilities 17.1%
Energy 11.9%
Materials 11.7%
Industrials 9.1%
Information Technology 8.3%
Consumer Staples 7.9%
Health Care 4.4%
Consumer Discretionary 4.2%
Financials 0.5%
S&P 500 6.8%
Source: FactSet

As you can see, the two S&P 500 SPX, -0.09% sectors that have risen the most so far this year are telecommunications and utilities, which are well-known for high concentrations of stocks with high dividend yields.

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