TAKING STOCK: Dividend Play Breaks Out, But There Are Better Bets
Published: Aug 17, 2011
By Tomi Kilgore
A DOW JONES NEWSWIRES COLUMN
When it comes to performance on Wall Street, it’s all relative.
With Treasury yields exceptionally low and the potential for a further slowing in the economy, buying stocks with a steady, high-dividend yield seems like a no-brainer. But before investors jump on the bandwagon, they should consider that recent relative performance data suggests high-yield corporate bonds are a better play.
A good way to bet on dividend plays is via the SPDR S&P Dividend exchange traded fund (SDY), which tracks the S&P High Yield Dividend Aristocrats Index. The Aristocrats are the 60 highest-yielding S&P Composite 1500 components which have raised dividends every year for at least 25 years.
via Taking Stock Dividend Play Breaks Out There Better Bets | First Enercast Financial.