The leadership of high-yielding stocks is far from over because the group is the least liked by fund managers while poised to gain popularity among a growing population of aging Americans, Bank of America Corp. said. Utilities and phone companies, which offer the highest dividend yield among the Standard & Poor’s 500 Index’s 10 industry groups, are owned by mutual funds in the smallest proportion relative to their weighting in benchmark indexes, according to data compiled by Bank of America. Portfolio managers are likely to be forced to raise holdings of those shares as earnings growth slows and more Americans favor stable returns, analysts led by Savita Subramanian wrote in a note dated Sept. 28.
“We’re still in the early stages of building interest, given that dividend yield still remains a somewhat underutilized investment theme,” Subramanian said. “When profits growth grows scarce, investors tend to seek out companies with stable earnings and avoid companies with volatile earnings growth. Companies with strong and stable dividends generally align with this theme.”
Source: Financial Advisor
Related Articles:
Dividend Stocks Will Become Even More Popular
Posted by D4L | Thursday, October 07, 2010 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
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...
-
Investors wanting to enjoy steady and consistent income should consider dividend aristocrats. In fact, even in these chaotic times, dividend...
-
The best dividend stocks have one thing in common: resiliency. They can continue increasing their dividends even in the harshest economic en...
-
Dividends and diversification -- those two things can help you achieve a comfortable retirement when combined with the income you will recei...
-
Higher dividend yields often imply that the underlying company paying the dividend has a higher risk profile. However, that's not always...
-
It's hard to beat a sustainable, high-yield dividend paired with a beaten-down valuation. The best dividend stocks offer high yields and...
-
When hunting for discounted investments, one excellent starting point is to look for businesses with dividend yields trading above their fiv...
-
Strange but true: seniors fear death less than running out of money in retirement. And unfortunately, even retirees who have built a nest eg...
-
BDCs can be excellent investment options for those seeking high returns, particularly when acquired at favorable valuations and supported by...
-
How high is too high when it comes to dividend stocks? Of course, every income investor wants as much yield as possible. However, they also ...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.