As the Treasury yield curve widens, dividend-paying stocks could show relative weakness compared with the overall market. In this article, the yield curve is represented by the iShares 1-3 Year Treasury Bond (SHY) over the iShares 20+ Year Treasury Bond (TLT). An increase in the price of the indicator signals that the gap between long-term and short-term rates is widening. Last May, the Federal Reserve hinted at cutting its stimulus program by the end of the year. That ignited a massive selloff in long-dated Treasury bonds and a spike higher in interest rates.
Worries about manufacturing and the job market, as well as a selloff in emerging-market assets, led to a strong move higher in Treasury bonds because of their attractive safe-haven status. Global investors piled into Treasury products, pushing down interest rates and contracting the yield curve. As rates fell, both fixed-income products and dividend-paying stocks showed relative strength compared with other financial assets. Stocks that pay large dividends usually show price movement similar to bonds because of their steady issuance of yearly payouts.
Source: The Street
Related Articles:
- 8 Higher-Yielding Financial Services Stocks With Rising Dividends
- 5 Quality Dividend Stocks To Take The Emotion Out Of Investing
- 7 Select High-Yield S&P 500 Dividend Stocks
- A Winning Investment Strategy
- 8 Industrial Strength Stocks With Dividend Growth
Do Higher Rates Endanger Dividend Stocks?
Posted by D4L | Friday, March 07, 2014 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
Dividend Growth Stocks News
~
Popular Posts Last 30 Days
-
If you're worried about inflation rearing its ugly head next year, you should probably worry about more likely catastrophes, such as bei...
-
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...
-
We screened our 24/7 Wall St. dividend equity research database and found 5 stocks that combined can generate over $3,000 of annual passive ...
-
The stock market has been on an upward path of late, with some of the most prominent stocks hitting astronomical highs. The dividend yield o...
-
Dividend growth stocks can be incredibly attractive investments if you crave recurring income. As these types of stocks raise their dividend...
-
The most dependable dividend stocks typically have a long track record of sustaining payouts through different market cycles. Companies with...
-
Dividends can be a tremendously powerful part of your investing strategy. Not only can they give you a continuing source of cash to reinvest...
-
In my opinion, there are three criteria investors should consider when evaluating a particular stock for their portfolio. The first is histo...
-
In this article, we discuss 5 best March dividend stocks to buy. If you want to read our detailed analysis of dividend capture strategy and ...
-
As the broader stock rally broadens to some of the more “boring” corners of the market, it’s the higher-yielding dividend plays that could s...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.