Last week a remarkable event occurred. For the first time ever, the Fed stated it will force low interest rates for a very explicit time–two years. Prior statements have contained vague language about the time period, describing the time frame as “extended.” Suddenly dividend stocks are more attractive than ever now. The reasons are pretty obvious.
There are many stocks out there paying almost twice as much income as the ten-year U.S. treasury. Most of these dividend stocks are easier to analyze because they lack political complexity and rely mostly on traditional stock valuation disciplines. I also think companies have improved their financial operations greatly so that the dividends are sustainable, if not potentially increasing. Even if dividend stocks paid the same as treasuries, I still think stocks are a better play right now. Stocks have more capital appreciation upside with the extra bonus that many pay more than 2.25% dividend yield.
Source: Forbes
Related Articles:
- Who Owns The Top Dividend Stocks?
- Top 10 Articles For 2010
- Dividend Stocks vs. a Safe Distribution Rate
- Best Stocks for 2011
- The 2011 Dividend Aristocrats
Dividend Stocks That Crush Treasuries
Posted by D4L | Wednesday, August 24, 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...
-
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...
-
Higher dividend yields often imply that the underlying company paying the dividend has a higher risk profile. However, that's not always...
-
Dividends and diversification -- those two things can help you achieve a comfortable retirement when combined with the income you will recei...
-
A select group of monthly dividend stocks pays dividends at a rate of 10% or higher. Those are the ones on this list. Investors should be aw...
-
It's hard to beat a sustainable, high-yield dividend paired with a beaten-down valuation. The best dividend stocks offer high yields and...
-
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 ...
-
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...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.