The slowdown in earnings growth "is generally a tailwind for dividend-yield strategies," said Subramanian.
Dividend Stocks Will Become More Popular
October 1, 2010
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What do you call a dividend-paying "blue Chip" stock? You call it "a stock masquerading as a bond."Why would you not invest in bond funds in a rising interest rate market? Because they carry,at best, the risk, of generating negative total returns and (unless you sell and realize enough losses to offset the taxable dividends. At worst, you could lose substantial principal value if you chose, for example to invest in a long-term Treasury bond fund and long-term rates rise.If you don't sell that's like paying taxes on your losses. That sounds like the advice a bank would give. You would be safer in their CDs earning zero percent.