This year has proven to be a rough one for dividend stocks. With the Fed’s rate hike looming and with bond yields rocketing higher, traditionally high-yielding sectors like REITs and utilities have taken an absolute pounding. The REIT sector, as represented by the Vanguard REIT ETF (VNQ), is down 13% from its January highs and is well into negative territory for the year. Many REITs are down more than 20%, putting them into outright bear market territory. Utilities have actually fared a little worse. The Utilities Select SPDR ETF (XLU) is down 14% from its January highs. And, as with REITs, many individual utility stocks are down significantly more.
At current prices, VNQ yields 3.9%, beating out XLU’s 3.6%. But it’s only fair to note that both sectors out-yield Treasuries by a decent margin. As of this writing, the 10-year Treasury yielded a pitiful 3.3%. Utilities have seen decent enough dividend growth, and a utility stock is still a better option than a bond in my view. But REITs have clearly beaten the pants off of utilities in terms of dividend growth, and I expect that to continue going forward. In this dividend stock showdown, REITs are the hand-down winner. They beat utilities in terms of both current yield and dividend growth, and they face none of the complicated macro issues that utilities face.
Source: InvestorPlace
Related Articles:
- Are ETFs and CEFs Good Dividend Growth Investments?
- 6 Companies With The Power of 5/15 Dividend Growth
- 9 High Rated, Lower Debt Dividend Stocks With A Reasonable Payout
- Searching the World For The Best Dividend Stocks
- What's Your Retirement Vision?
Dividend Stocks Showdown: REITs vs. Utilities
Posted by D4L | Saturday, July 11, 2015 | 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...
-
GameStop (NYSE:GME) lost about 40% of its market value over the past three years, as rising digital downloads and declining mall traffic thr...
-
In a capitalistic society, opportunities to generate (mostly) passive income are all around us. Dividend growth investing is one of the most...
-
These elite income producers have rallied this year. Their brilliance at producing passive income seems to have caught the market's eye ...
-
Investors buy dividend stocks for a few reasons. For one, they provide income via dividends that act as a bonus on top of capital appreciati...
-
Buying dividend stocks can be tricky. Oftentimes, stocks that pay exorbitantly high dividends have underlying financial problems, and their ...
-
If you are looking for reliable dividends, these three Dividend Kings should be right up your alley. Dividends are paid at the discretion of...
-
While optimism in the broader market remains robust – particularly for hyped-up sectors like technology – investors may still want to consid...
-
A strong dividend investing strategy may be to focus on high-quality names that score well on several dividend-related metrics. In other wor...
-
Since the market highs in July, stocks have been under considerable pressure. Indeed, 10-year Treasury yields are at the highest level since...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.