Dividends4Life: Dividend Stocks to Consider Rather Than Treasurys

So far this year Treasurys have nearly matched the performance of stocks, with the Barclays U.S. Treasury Index returning 2.6 percent, compared with 2.8 percent for the S&P 500. But the strength of Treasurys might not last, as the Federal Reserve likely ends its quantitative easing later this year and markets begin to anticipate an interest rate increase by the Fed sometime next year, writes Philip van Doorn of MarketWatch. "At some point soon, the money spigot will be turned off. That will mean downward pressure on bond prices and possibly some pain for stock investors as well," he says.

"Investors seeking current income may well be better off building positions in quality companies paying high dividends on common shares." Van Doorn lists the five stocks in the S&P 500 that have the highest dividend yield, experienced growth in annual sales per share during the past two years and enjoyed enough free cash flow last year to more than cover dividends. The five stocks include CenturyLink (CTL), AT&T, Altria Group (MO), People’s United Financial (PBCT) and Verizon (VZ).

Source: Money News

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