If you're a long-term investor looking for steady income, common
wisdom has often steered you towards 10-Year Treasury bonds. With
treasury yields falling a massive 31% since the beginning of the
the best dividend stocks
are becoming the clear choice.
Back in January, 10-Year Treasuries yielded a healthy 3.64% -
not bad for investors looking for steady income. On Thursday,
though, bond rates were teetering on a 17-month low at a paltry
2.55% annual yield.
For income investors, 2.55% just isn't going to cut it.
Especially with so many
high-quality dividend stocks
In a recent
interview with AOL DailyFinance
, Lawrence Carrel, author of
Dividend Stocks for Dummies
, pointed toward dividend stocks as a far superior option.
"In a volatile environment, where the stock market can go down
and bonds are paying extremely low interest, a good place to beat
the rate of return on bonds is dividend stocks," Carrel says. "If
you can get potential upside in your investment at a yield that
is 60% to 100% better than the 10-year Treasury, why wouldn't you
Fund managers, too, have seen a shift in the markets that favors
dividends. In a
interview on CNBC
, Broadleaf Partners' Doug MacKay said "I think stocks over bonds
make complete sense … We've got a disconnect in the markets between
fixed income and equities."
As more and more ultra-conservative investors pile into
Treasuries, their yields continue to fall. Meanwhile, dozens of
high-quality dividend stocks with yields far-outpacing bonds are
ripe for the picking.
Are dividends guaranteed like T-Bills? No. But consider this: a
96 dividend stocks have increased their dividend
payouts every year for the past 25 years
That should be good enough for just about anybody.
Be sure to visit our complete recommended list of the
Best Dividend Stocks
, as well as a detailed explanation of
our ratings system here
Created by Dividend.com