Dividends4Life: Dividend Stocks Make Bonds Look Silly

Dividend Stocks Make Bonds Look Silly

Posted by D4L | Monday, June 04, 2012 | | 0 comments »

Forget bonds, smart investors today want dividends. The reason is simple -- with the Federal Reserve continuing to stomp on interest rates, the yields that investors can get from dividend-paying stocks are better than the yields they can get from even longer-duration Treasury notes. This week, Bespoke Investment Group noted:

"With the 10-Year US Treasury now yielding 1.74%, it is now paying a coupon that is less than the dividend yield of more than half of the stocks in the S&P 500. As of today's close, there are now 271 stocks in the S&P 500 that have a greater yield than the 10-Year US Treasury." Telecom companies in particular light up the radar for investors looking for huge payouts as Frontier Communications (NAS: FTR), Windstream (NAS: WIN), and CenturyLink sport respective yields of 11.9%, 10.5%, and 7.5%.

Source: Daily Finance

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