With 10-year Treasury yields rising to their highest level in more than a year from last summer’s historical lows, it should come as no surprise that stocks which benefitted from a search for yield bonds are now tanking. Earlier in the year, tech was the least-loved sector as investors chased stocks with traditionally high dividends. Now it’s those sectors with steep payouts, the so-called defensive plays including utilities and telecom, that are the dogs of the market.
The turning point appears to have been at the beginning of May when the Federal Reserve’s policy statement said the central bank was prepared to increase or reduce the pace of its bond purchases. Investor focus tended to focus more on the tapering part of the statement and that thinking got a big boost later in the month when Fed Chairman Ben Bernanke told Congress a scaling back of bond purchases could happen over the next few months.
Source: Market Watch
Related Articles:
- Dividend Stocks Are My Conviction
- Are The Dividends Safe For These High-Yielding Stocks?
- My 2012 Top And Bottom Performing Dividend Stocks
- 7 Dividend Stocks With Room To Increase Their Payout
- 9 High Rated, Lower Debt Dividend Stocks With A Reasonable Payout
Why Investors Are Dumping Dividend Stocks
Posted by D4L | Monday, June 17, 2013 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
If you're worried about inflation rearing its ugly head next year, you should probably worry about more likely catastrophes, such as bei...
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
When a company pays a dividend, it's a good thing for shareholders. When a company consistently pays a dividend every quarter, it's ...
-
If you've been holding back from investing in your future just because you don't have a lot of extra cash to spare, I've got gre...
-
If you are looking for high-yield dividend stocks that can beat the market, you might want to check out these three companies. They all have...
-
If you are here to build a portfolio that thrives in all seasons, consider dividend stocks. They can generate steady returns and provide sta...
-
The company's remarkable consistency and low-risk business model make it a "first-choice investment opportunity," according to...
-
One way to achieve financial freedom is to create passive income, or income that does not depend on your active involvement beyond a certain...
-
Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciations have contribut...
-
My top financial goal is to eventually become financially independent. The foundation of my strategy is to make investments that produce an ...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.