As 2011 begins, the growing legion of investor's seeking retirement income, are faced with the same conundrum they faced in 2010. Interest rates remain at near all-time lows which severely limit attractive investment options to meet their income needs. After being traumatized by the great recession of 2008, safety and risk aversion are of the highest priority. But alas, fixed income instruments (bonds, CDs, etc.) the traditionally safest investment vehicles offer scant yields and therefore abnormally high risk profiles at today's rates.
In contrast, the situation for high-quality dividend paying common stocks has rarely been as attractive as it is today. Current valuations of many best-of-breed, blue-chip large-cap stalwarts are historically low. With valuations abnormally low, the current entry-level dividend yields for many of these high-quality companies is higher than would normally be expected. Sensible investors can put together a diversified portfolio of these blue chips with beginning dividend yields approaching what they could earn from a 10 year treasury bond. Better yet, these portfolios can be expected to increase their dividend yield every year as they historically have.
Source: iStockAnalyst
Related Articles:
Quality Dividend Stocks Attractively Valued
Posted by D4L | Monday, January 17, 2011 | 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...
-
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...
-
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...
-
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...
-
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...
-
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 ...
-
For this list, we looked at stocks that pay monthly dividends. Among them, we chose stocks with the highest dividend yields, which range fro...
-
Every investor wants to earn more. It is how we define "more" and how we go about earning it that defines the type of investor we ...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.