Dividend stocks are gaining popularity again due to the recent wave of bearishness in the stock market. Both retail and institutional investors chased AI and growth stocks in the past two years, and dividend stocks were rarely on their bucket list as the returns paled compared to the hottest names on the market.
Many on Wall Street now think the pendulum has swung. The GDP forecast for Q1 2025 is -2.8% and most macro indicators are negative. Despite some tech stocks shaving off a third of their value, people are still hesitant to buy the dip due to a lack of positive news and general uncertainty. And as long it stays that way, a sustained recovery isn’t very likely.
With that in mind, monthly dividend stocks are worth looking into. Your typical dividend stock pays dividends quarterly, but monthly dividends are better for two main reasons: you receive cash sooner, and the faster reinvestment cycle gives you a slight compounding edge over time. Plus, there’s the added benefit of having a frequent stream of cash you can access if you ever face a cash crunch in a recession.
This post originally appeared at 24/7 Wall St.