Equity markets have been regularly hitting all-time highs, and stocks are looking more and more overbought. I've been expecting a correction for a few weeks, but so far no dice -- unless we're seeing the beginning of one now. Regardless of where you think the market is going, you should have some money in equities -- I'd say 40% to 50% of your holdings. And much of that should be in dividend-paying stocks, despite their big run.
For average investors with a moderate risk tolerance, dividend-paying stocks are still the best combination of income and potential capital gains. And, to paraphrase Winston Churchill on democracy, all the other alternatives are so much worse. Take bonds, for instance. The 10-year Treasury note is yielding 2%. High-yield bonds recently yielded below 5%, their lowest ever, and Treasury Inflation Protected Securities (TIPS) guarantee negative returns for the next 15 years.
Source: Seeking Alpha
Related Articles:
- Who is Ben Grossbaum and Why Should We Listen to Him?
- 9 High-Yielding Mega-Cap Stocks
- Best Stocks for 2013
- Dividend Investors Should Focus On Stocks, Not The Market
- The Secret Ingredient of Dividend Growth Stocks
Dividend Growth Stocks News
- 3 Dividend Stocks for Stability-Seeking Retirees - The Motley Fool Canada - 5/30/2025
- Rs 159 Dividend Stocks: 14 companies' shares to trade ex-date today (May 30, Friday) – Full List - ET Now - 5/30/2025
- Want More Money? These 3 High-Yield Dividend Stocks Are on Track to Give You a Raise Every Single Quarter. - MSN - 5/29/2025
- 15 Best Dividend Stocks to Buy for Long-Term Passive Income - Insider Monkey - 4/25/2025
- 3 Covered Calls On Dividend Stocks To Add Even More Income Now (NYSE:PM) - Seeking Alpha - 5/29/2025
- AFLAC Incorporated (AFL) Dividend Stock Analysis - 5/23/2025
- 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
Dividend Stocks Still Make Sense
Posted by D4L | Wednesday, June 05, 2013 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.