Are Dividend Stocks Safer Than Bonds?

Marc Faber, writer of the Gloom, Boom & Doom Report, recently challenged the traditional notion that government bonds are safer than stocks in an interview on Bloomberg TV: The [Swiss] 10-year government bond yield is 0.7% and you can buy quality companies and they have a dividend yield of maybe 3%. Relative to government bonds, equities are attractive.

If you really think it through and you are bearish as I am and you think the whole financial system will one day collapse, maybe three years or five years or 10 years, one day there'll be a reset and everything will be essentially started anew. Then you are better off in equities than in government bonds because a lot of government bonds will either default or they will have to print so much money that the purchasing power of money will depreciate very rapidly. And while U.S. 10-year Treasury bonds yield roughly 2%, investors can still find plenty of stocks yielding higher dividends right up to (and through) any apocalypse.

Source: Motley Fool

Related Articles:
- 6 Higher-Yielding Consumer Stocks With A History of Rising Dividends
- 9 Dividend Stocks With A Low P/B Ratio
- 7 Small-Cap Dividend Stocks For Yield And Growth
- 10 Dividend Stocks Beating the S&P With Positive Returns
- 5 Higher-Yielding Healthcare Stocks With Increasing Dividends