Defensive Investments in a Bull Market
Originally published on Fox Business.
Investors are taking a risk-on approach as Wall Street kicks off a strong start to the year. And despite rising crude prices and debt worries overseas, investors look to be turning away from last year's popular safety plays and opting for higher-beta stocks.
Of course, the market's still volatile, and although dividend-paying stocks are underperforming the S&P 500 index so far this year, analysts say there's still room for high-quality stocks.
“Dividend-paying stocks are a defensive play and act as an anchor in an investor's portfolio,” said Howard Silverblatt, senior index analyst at S&P Indices. “They're a stable investment when the market is unpredictable.”
And while investors can play dividend-paying stocks numerous ways, exchange-traded funds are becoming a popular option.
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