This has been an incredible year for the stock market. Through this past weekend, all three major U.S. indexes had gained between 16% and 24% year to date, which trounces historic annual returns for the market of around 7%, inclusive of dividends and when adjusted for inflation. This jibes with the fact that the current economic expansion is the longest on record for the United States, dating back to when record keeping began, about 160 years ago.
But as investors, we also know that peaks and troughs in the economic cycle are inevitable. With the bull market now lasting in excess of 10 years, it's only logical to expect an economic contraction, or even recession, to strike sooner rather than later. And when one does, dividend stocks will have an opportunity to show their true value.
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