Top Dividend-Paying Stocks

With the risk of a second downturn in the U.S. economy rising and debt problems continuing to plague Europe, many investors are shunning the equities market altogether. Meanwhile, the rush to safety in fixed-income investments has driven yields down to “incredibly low” levels, according to analysts.

In this scenario, the analysts at Morningstar say dividend-paying stocks offer a good alternative that often -- as is the case now -- significantly outperform the S&P 500 and the bond market. Brett Horn, associate director of equity research at Morningstar, points out that the list of top dividend-paying stocks has changed dramatically over the past few years, shifting away from financials -- there are none on this year’s list -- to pharmaceutical companies, which now occupy five of the 10 spots on the list.

Source: Financial Planning

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