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...
-
Long-term investors know that dividends can have a major impact on returns over time. When the stock market is struggling to make gains like...
-
We decided to go on a hunt for quality stocks that for one reason or another have been buried, and not just this year. We found three incred...
-
Buy and hold ... forever? It's a tall order, but a select few companies are potentially up to the task. You can build a wealth-compoundi...
-
Does the high interest rate environment we're living in have you feeling down? Here's something to remember that can help you turn t...
-
Essentially, we’re looking for more Apples – tech firms with a large market cap (at least $1-billion) and the financial means necessary to p...
-
Dividend stocks can be consistent market-beaters. However, empirical research shows that the best dividend stocks tend to generate better-th...
-
High-quality dividend stocks are always worth loading up on. This is doubly true for companies that offer shareholders an attractive mix of ...
-
Numerous high-quality dividend opportunities are up for grabs at the moment, which may be appealing to some investors given the uncertainty ...
-
Some dividend-paying companies have seen their financials struggle over the years. These companies become vulnerable to dividend cuts which ...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.