This is what was supposed to have happened: A recovery in global markets, led by the United States, would finally push up interest rates. Bond yields and rates on money-market funds and bank deposits would rise, making them more appealing to income-oriented investors. In turn, dividend-paying stocks would lose appeal, because the downside risk of equities couldn’t justify their single-digit yields. Maybe it’ll still happen in 2015, as was widely thought. But it sure didn’t start this week.
Instead, all the relevant markets reversed course. Equities sold off and interest rates fell as bond prices rose. And, as a result, there was a sharp increase in the number of stocks, in Canada and particularly in the U.S., with dividend yields that beat 10-year government bonds. Many investors will look back on this week and see a bloodbath. Some, who feel this is a blip, rather than a first step to a market collapse, will see it as a chance to buy.
Source: Globe and Mail
Related Articles:
- Are Defense Stocks Good Defensive Stocks?
- International Securities For A Diversified Income Portfolio
- 5 Dividend Stocks That Gave Me A 20%+ Annualized Return
- 6 Rainy Day Dividend Stocks
- When A Stock Fails To Raise Its Dividend: Is It Time To Sell Intel?
Dividend Stocks Are Appealing Again, But Beware
Posted by D4L | Tuesday, November 11, 2014 | ArticleLinks | 0 comments »________________________________________________________________
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...
-
In short, dividend-bearing stocks are one of the smartest approaches stock investors have available currently. The same is true in strong ec...
-
Finding cheap dividend stocks is critical for another reason. By the time the Federal Reserve meets for the second time in 2023, the central...
-
Investing in passive income can allow you to make money with minimal portfolio management. There are many types of investments to make passi...
-
As 2022 wraps up, many investors are likely looking for ways to position their portfolio for more macroeconomic uncertainty next year. After...
-
Last year was brutal for the real estate investment trust (REIT) sector. Rising interest rates created two headwinds for the industry. They ...
-
For most investors, the new year brings with it new opportunity. With all three major U.S. stock indexes falling into a bear market last yea...
-
With inflation appearing to have peaked and fears of a recession dimming somewhat, investors have some positive catalysts to look forward to...
-
Most income-oriented investors focus almost exclusively on the current dividend yield of stocks to decide whether to purchase them. However,...
-
Dividends drive significant returns for Berkshire Hathaway's portfolio. One common theme of Warren Buffett's Berkshire Hathaway is d...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.