Throughout much of the past several decades, investors have had a decision to make when considering how to allocate their money. Bonds typically provided higher yields than stocks, but with most bonds, the interest payments you receive represented the only return you could expect from your investment. Meanwhile, if you wanted to have a chance at capital appreciation, investing in stocks usually meant accepting a lower dividend yield in exchange.
I don't think dividend yields will stay this far above bond yields very long. That may happen due to rising stock prices that will reduce dividend yields, or falling bond prices that will close the gap between yields on bonds and stocks. Whichever way that happens, though, dividend stocks look like a much better buy than bonds right now. Even with such high levels of uncertainty about the economy, attractive yields on dividend stocks give them a margin of safety you simply don't have with bonds right now. If you still have a big portion of your money in the bond market, take a closer look at dividend stocks and see if they might give you a better way to achieve your long-term financial goals.
Source: Motley Fool
Related Articles:
________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
When shares trade at a 40% discount to book value, they should have substantial flaws. This REIT isn’t perfect, but it deserves a higher rat...
-
The best dividend stock nobody is talking about is an undervalued, high-dividend chemical company poised to grow at an exponential rate. Wit...
-
If any investor has stood the test of time, it is Warren Buffett. For years, the “Oracle of Omaha” has had a rock-star-like presence in the ...
-
Last week, we found out that the consumer price index (CPI) went up by 8.3% in April, more than the 8.1% estimate. Meanwhile, the ongoing wa...
-
A full-blown recession, or the late-year rally in Wilson’s view – the natural move for investors will be toward defensive stocks, moves to p...
-
If any investor has stood the test of time, it is Warren Buffett, and with good reason. For years, the “Oracle of Omaha” has had a rock-star...
-
When a retailer has a sale, it's often celebrated with banners, signs, and commercials telling customers not to miss out on the spectacu...
-
The Dividend Kings, which are those stocks with at least 50 years of dividend growth, is an excellent place to find high quality names. Ther...
-
Mid-cap dividend stocks are the best bargain on the board right now. I love them because lame income investors don’t consider them. They fix...
-
5 big yields, all with upside. But I've got 1 more share to mention. With most of the earnings releases out, the charts are updated to s...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.