"These dividend stocks can perform well in bad times and good times. Their underlying businesses are on a strong footing. They are well-positioned to deliver stellar gains next year. Are you ahead, or behind on retirement? SmartAsset's free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don't waste another minute; learn more here.(Sponsor)"
"In both scenarios, dividend stocks can outperform next year. Most growth stocks and tech names have pulled ahead significantly, and next year could see a 2022-esque rotation where investors seek refuge in companies with defensive characteristics. And if the market continues booming, dividend stocks will benefit as lower interest rates encourage investments in equities in place of bonds with declining yields. When interest rates fall, newly issued bonds carry lower coupons, so their income becomes less attractive than stocks."
Dividend stocks can outperform whether the market rallies or corrects because investors rotate into defensive, income-generating companies during uncertainty and reallocate away from lower-yielding bonds when interest rates fall. Growth and tech stocks have pulled ahead, increasing the potential for a rotation back toward stable dividend payers. Falling interest rates reduce newly issued bond coupons, making stock dividends comparatively more attractive and prompting income-seeking investors to shift allocations. Evergy (EVRG) operates as a regulated electric utility serving about 1.7 million customers across eastern Kansas and western Missouri. Utility businesses are largely domestic and benefit from expanding transmission and rising load from onshoring, EVs, and data centers.
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