Dividends4Life: Fed killing bonds - Buy dividend stocks

Fed killing bonds - Buy dividend stocks

Posted by D4L | Thursday, December 22, 2011 | | 0 comments »

So why on Earth would anyone looking for safety in income buy a bond when they could a blue chip company with an even higher yield instead? "There's a lot of risk in longer-term bonds. Treasuries will only do well if the world comes to an end," said Rex Macey, chief investment officer with Wilmington Trust in Atlanta. "You can't buy a 10-year with the yield at 2% and expect a real return. Quality dividend stocks are bargains compared to Treasuries."

Experts said dividend stocks should continue to do relatively well as nervous investors look for any way they can to squeeze out a decent yield in this low-rate environment. Smith, who only will invest in stocks that pay dividends, said he's hopeful that more tech companies with tons of cash and little debt will follow Cisco's lead and start issuing dividends.

Source: CNN Money

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