Dividend Investing In The New World Order, Here Is Why It's So Exciting

2025-05-13 09:15:00 ET

Summary

• We have transitioned from a low-interest rate and disinflationary environment to a high base rate and inflationary world.
• Before that, we had the luxury of the "FED put" and accommodative interest rates driving the asset prices up in a low volatility fashion.
• This made income investing unattractive, both in absolute terms (as yield were compressed) and relative to growth-tilted stocks that just kept surging higher.
• Yet, these new macro-level conditions have switched things around.
• In this article I explain why REITs, midstream and high-quality CEFs are the key asset classes, where I see the best risk to reward ratios from the yield-standpoint.

From the GFC and until the COVID, we were enjoying very favorable macro conditions that provided strong tailwinds for almost any asset class out there. Granted, there were periods of heightened volatility, but those were short-lived and oftentimes stopped by the "FED put" via either new rates cuts or expansion of its balance sheet....

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