Investors are Hot for Dividends

We’ve previously pointed out how sour investors remain on U.S. stocks. But Goldman Sachs analysts highlighted this interesting data point in a note today, showing that U.S. dividend stocks have been growing in appeal.

This makes sense. With the Fed at ZIRP and likely to remain there, investors have been pushed further and further out the risk spectrum. They began by snapping up safe high-grade corporate bonds. Then they moved on less-flawless companies and riskier junk bonds. And now it seems they’re being pushed reluctantly back to the stock market, or at least what they see as the safest element of it, dividend stocks.

Source: Wall Street Journal

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