Invesco Canada blog

Insights, commentary and investing expertise

Avoiding the equity income “dividend trap”

March 17, 2017
Subject | ETFs | Smart beta

Income-oriented stocks can provide investors with numerous advantages – including the potential for high, recurring income, a possible inflation hedge and added portfolio diversification. And while diversification does not ensure a profit or protect against loss, dividend stocks can serve as a significant source of investment returns. In fact, over the past two decades, dividends have contributed more than 40% to S&P 500 Index investors’ total returns.1