Dividends4Life: Dividend Stocks to Weather the Economic Storm

Dividend Stocks to Weather the Economic Storm

Posted by D4L | Friday, September 03, 2010 | | 0 comments »

After the economic crisis hit stocks, many investors fled into the bond market seeking a safe-haven for their capital. Treasury bonds represented a large chunk of this investment, but even junk bonds surged in popularity. Unfortunately, any asset that sees a sudden influx of cash often becomes overvalued, and bonds are no different than any other asset class.

Investors pouring money into bonds may want to reconsider their positions as yields appear to be bottoming out and prices may be close to topping. Large capitalization stocks that pay a dividend may be a better alternative as they pay roughly the same yields as many bonds, while offering capital gains potential and lower volatility and risk in some cases.

Source: SumFolio.com

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