Dividend plays remain attractive as yields stay higher than risk-free rates for now, offering steady income and downside cushioning. However, as rates fall, capital tends to rotate toward growth and cyclicals, which benefit from cheaper borrowing and renewed demand.
If your portfolio already leans defensive, gradually adding quality growth names — especially in tech, industrials, or consumer recovery themes — could position you ahead of the cycle.
For more risk-averse investors, holding dividend stalwarts with strong cash flow (banks, telcos, REITs) still makes sense through the transition.
Personally, I’d accumulate selectively on pullbacks, rather than chase rallies — focusing on companies that can sustain dividends and benefit from lower funding costs.
Balanced stance: income now, growth later.
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