What's unique about Edison and Altria? They pay enormous dividends. And starved of yield with interest rates near 0%, investors are tripping over themselves to get dividends these days. S&P 500 companies with the highest dividend payouts currently have the highest P/E ratios. In 2007, it was the other way around: Stocks that didn't pay dividends had far higher valuations.
But don't get too comfortable with the dominance of dividends. There's a bad precedent here. Last decade, the Federal Reserve kept interest rates far too low for far too long. Starved of income from Treasuries, investors were tempted to search for yield wherever they could find it, which back then meant subprime mortgage bonds. You know how that went.
Source: Motley Fool
Related Articles:
- The 2011 Dividend Aristocrats
- 13 Dividend Stocks With A Good Yield/Growth Mix
- 11 Higher-Quality, High-Yield Dividend Stocks
- 6 Dividend Stocks That Will Make You Smile
- Dividend Stocks vs. Dividend ETFs
Dividend Growth Stocks News
- Want to Make $1,000 in Annual Passive Income? Invest $11,250 Into These Ultra-High-Yield Dividend Stocks. - The Motley Fool - 5/17/2025
- Bajaj Finance, Page Industries to Infosys: Here are 8 dividend stocks to trade ex-date soon. Check details - Mint - 5/17/2025
- 5 Worry-Free Dividend Stocks Investors Can Buy Now and Hold Forever - 24/7 Wall St. - 5/17/2025
- Dividend Stocks: Ashok Leyland, Havells India, LTIMindtree, among others to trade ex-dividend next week; Full list - Mint - 5/17/2025
- I asked ChatGPT to suggest 3 UK dividend stocks for further research. Here’s what it said - Fool UK - 5/17/2025
- Automatic Data Processing Inc. (ADP) Dividend Stock Analysis - 5/16/2025
- Air Products and Chemicals Inc. (APD) Dividend Stock Analysis - 5/9/2025
- Waste Management, Inc. (WM) Dividend Stock Analysis - 5/2/2025
- Wal-Mart Stores, Inc. (WMT) Dividend Stock Analysis - 4/25/2025
- Abbott Laboratories (ABT) Dividend Stock Analysis - 4/18/2025
________________________________________________________________
Subscribe to:
Post Comments (Atom)
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.