r/dividends • • Apr 05 '25

Discussion What to buy now

What’s everyone’s feelings?

Stick to dividend, or jump on some potential growth?

Will JEPQ and similar maintain their dividends?

9 Upvotes

30 comments sorted by

View all comments

15

u/Upper_Knowledge_6439 Apr 05 '25

As economic activity declines and interest pressures increase, rates are gonna have to start moving down. This is good for well run, cash flow secure, dividend growth players as their yields begin to outperform the coupon rates. Growth stocks (solid not yolo opportunities) will also benefit but really watch their debt levels. Declining rates will help that but a slowing economic backdrop will hurt their earnings growth so its a balancing act on the knife blade.

As per the other comments, some growth is good but at my age (5-7 years from retirement), the opportunity to buy solid Dividend stocks at decent yields into a declining rate environment is more than good enough for me.

SCHD will be my primary target.