Posted by D4L | Monday, May 07, 2012 | | 0 comments »

In a recent Penny Stock Detectives article, co-editor Danny Esposito states that there was a time when term deposits at banks paid interest in excess of what an investor would receive through dividend stocks. This meant that dividend payments were usually well below the interest that was paid out by banks. Esposito argues that, in this historically low interest rate environment, this is no longer the case. The editor reports that investors have found that dividend payments now pay more than interest income from the banks and so have funneled more and more of their investments into dividend stocks.

“Corporations understand this dynamic, which is why dividend payments by corporations are at record highs,” notes Esposito. “Corporations want more shareholders, so that their stock price appreciates. They are offering dividend payments like never before, so they can be defined as dividend stocks, because they know that is exactly what investors are searching for.”

Source: PR Web

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