Dividends4Life: Managers sell highest paying dividend stocks

Managers sell highest paying dividend stocks

Posted by D4L | Friday, December 30, 2011 | | 0 comments »

Since the financial crisis, money managers had flocked to high-paying dividend stocks, lured by one of the only bright spots in the volatile U.S. equity market. Not anymore. Investors — especially retirees and those close to retirement — are desperate for income in a market where Treasuries are yielding close to nothing. Dividend-yielding stocks, generally low-risk and with a track record of providing solid streams of incomes over time, have been a favorite of money managers.

But now, T. Rowe Price Associates, Bank of New York Mellon Corp and AllianceBernstein LP are part of a growing group of asset managers dumping some of these stocks because they believe they are too expensive. Managers are moving money out of utilities, telecom stocks and, in some cases, master limited partnerships. They say that these stocks — traditionally resilient in market downturns — are so pricey that they may not rebound if markets decline.

Source: Financial Post

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