In addition, dividend stocks typically underperform, with the Russell U.S. Large Cap High Dividend Index generating a 99% total return since 2001 compared to the 130.8% return of the Russell 1000 index.
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Some stocks with the highest dividend yields, including mortgage-backed real estate investment trusts, tend to be the most risky, and many dividend paying stocks are interest rate sensitive, says Jim Cahn, chief investment officer of Wealth Enhancement Advisory Services in Minneapolis. So reports ThinkAdvisor.
In addition, dividend stocks typically underperform, with the Russell U.S. Large Cap High Dividend Index generating a 99% total return since 2001 compared to the 130.8% return of the Russell 1000 index.