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No. of Recommendations: 2
Hi Bob - Here's how I see it.

Growth companies with insignificant dividends (aapl, orcl...) that continue to exhibit growth will offer attractive returns under most market conditions over a long enough time frame and won't be directly affected by increased interest rates. But indirect effects can become significant if rates get high enough for long enough.

Growth companies with significant dividends that continue to exhibit growth will languish as rates increase, unless their growth is exceptional (which is unlikely).

Growth companies that stop growing or start shrinking will destroy a portfolio whether they pay dividends or not. The list of companies that were at one time viewed as "strong" that are now either gone or on life support is long.

So, buying strong companies that are likely to keep getting stronger is a good strategy under all economic conditions if you have a long enough time horizon. The trick is figuring out when it's time to move on to stronger companies and let the old favorites go.

But for shorter investment horizons, I don't accept that strong dividend paying companies are the right choice for every economic situation. They've been good for a while now. But it's close to time to move on.

Ed
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