A super-bullish report from Goldman Sachs (NYSE:GS) analysts called “The Long Good Buy; the Case for Equities” is out today. It’s over 40 pages and has some heady stuff in there, but most importantly it makes the argument that stocks — particularly big dividend payers — are super cheap relative to bonds. That means long-term investors looking 10 or 20 years down the road should jump into dividend payers immediately, and not look back.
In the early 20th century, the stock market was largely viewed as a volatile asset class that underperformed bonds, and thus was not very seriously seen as an investable opportunity for most. Institutions shunned stocks, even those with tremendous dividends, and chased lower-yield in bonds because of the stability. It was a bull market for bonds. As decades passed, institutions slowly warmed up to the idea of taking on the risk of the equities market. The money started to flood into stocks and mutual funds — pushing equities higher, but driving down dividend yields in equities.
Source: InvestorPlace
Related Articles:
- Increasing Dividend Yield Part II: REITs
- 11 Dividend Stocks Providing Positive Feedback
- 8 Dividend Stocks To Consider While Waiting on Apple to Pay Its First Dividend
- Holding Bonds Could Push Your Portfolio Into The High Risk Category
- Love People, Use Dividend Stocks
________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
GameStop (NYSE:GME) lost about 40% of its market value over the past three years, as rising digital downloads and declining mall traffic thr...
-
In a capitalistic society, opportunities to generate (mostly) passive income are all around us. Dividend growth investing is one of the most...
-
These elite income producers have rallied this year. Their brilliance at producing passive income seems to have caught the market's eye ...
-
Investors buy dividend stocks for a few reasons. For one, they provide income via dividends that act as a bonus on top of capital appreciati...
-
Buying dividend stocks can be tricky. Oftentimes, stocks that pay exorbitantly high dividends have underlying financial problems, and their ...
-
If you are looking for reliable dividends, these three Dividend Kings should be right up your alley. Dividends are paid at the discretion of...
-
While optimism in the broader market remains robust – particularly for hyped-up sectors like technology – investors may still want to consid...
-
A strong dividend investing strategy may be to focus on high-quality names that score well on several dividend-related metrics. In other wor...
-
Since the market highs in July, stocks have been under considerable pressure. Indeed, 10-year Treasury yields are at the highest level since...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.