Dividend-Paying Stocks
Over the last decade, dividend-paying stocks, in which category we include REITs and MLPs, have consistently outperformed the S&P 500, and over the last five and a half years the category dramatically outpaced the yield on 10-Yr. U.S. Treasuries. Today, many stocks offer higher dividend yields than bonds, which can help advisors increase their clients’ cash flow and upside potential while simultaneously lowering interest rate risk. The downside of high dividend stocks is their higher volatility. They are equities, after all.

Figure 2: The State Of Dividends