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
-
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...
-
When a company pays a dividend, it's a good thing for shareholders. When a company consistently pays a dividend every quarter, it's ...
-
If you've been holding back from investing in your future just because you don't have a lot of extra cash to spare, I've got gre...
-
If you are looking for high-yield dividend stocks that can beat the market, you might want to check out these three companies. They all have...
-
If you are here to build a portfolio that thrives in all seasons, consider dividend stocks. They can generate steady returns and provide sta...
-
My top financial goal is to eventually become financially independent. The foundation of my strategy is to make investments that produce an ...
-
One way to achieve financial freedom is to create passive income, or income that does not depend on your active involvement beyond a certain...
-
The company's remarkable consistency and low-risk business model make it a "first-choice investment opportunity," according to...
-
Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciations have contribut...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.