Dividends4Life: Stocks That Pay You Twice as Much as Treasuries

Stocks That Pay You Twice as Much as Treasuries

Posted by D4L | Monday, February 13, 2012 | | 0 comments »

Treasury bonds provide safety to investors but, after a rally that started in late 2008, now lack return. Dividend stocks, on the other hand, can easily give you twice the gain with little additional risk in certain cases. With uncertainty over the direction of the European and U.S. economies, the stock market is worrying investors. Over the past year, more money was poured into bond funds than equity funds. As a result, the spread between bond and equity mutual fund investing reached $1.2 trillion in 2011, an unprecedented level.

Federal Reserve Chairman Ben Bernake is committed to keeping the Fed Funds rate at zero for at least three years. The 10-year Treasury yields 2%, just above the recent low of 1.8%. Doubling the 10-year Treasury yield isn't that difficult. There are plenty of dividend-paying stocks that pay at least twice what the government or certificates of deposit will give you. The key is to ensure the stability of the dividend and health of the company.

Source: The Street

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