King Dividend’s benevolent rule over the stock markets is being challenged.
Investors are in a more speculative mood so far in 2014, and that means dividend-paying stocks have slipped down the performance charts. The top three sectors in the first quarter of the year were materials, energy and gold. Even the benighted S&P/TSX Venture index has come to life. We may well be at an inflection point where the dividend stars of the past five years give way to companies that offer more growth potential. But there’s still enough uncertainty out there to maintain a dividend core in a portfolio.