Dividends4Life: The Search for Yield Isn't Easy, Given Ultra-Low Rates

Dividend-hunting investors face a quandary. US Treasury bond yields are at ridiculously low levels and are likely to be so for a long time to come. The yield on a 10-year bond is all of 1.55%! At the same time, the stampede into dividend stocks has pushed them up to very pricey levels. It's true that many dividend-rich stocks have been bid up to lofty levels. It's also true that history shows that a portfolio with a healthy dollop of dividend stocks is going to outperform in the long haul all things being equal. The S&P 500 total return index, which factors in the index's dividends and reinvests them, has outperformed the S&P 500 index by a wide margin going back to 1990, according to an analysis Bespoke Investment Group.

Where to look? Analysts and market pundits suggest looking at companies with a steady track record of paying out dividends. InvestorPlace recently identified five companies that have raised payouts for more than 50 years running. The are Johnson & Johnson (JNJ), The Coca-Cola Co (KO), Lowe's Companies, Inc. (LOW), 3M Co (MMM) and Procter & Gamble Co (PG).

Source: The Street

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