It seems almost oxymoronic, but dividend-paying stocks are hot. Income-producing stocks dramatically outperformed non-dividend-payers in 2011's quality-conscious market environment, and dividend-focused ETFs and mutual funds have been gathering assets at a good clip.
It's easy to see the appeal. Still reeling from accounting frauds and the bursting of two bubbles in the space of a decade, many investors view a company's ability to pay a dividend as an important demonstration of financial strength and stability. And although the risk profiles of stocks and bonds are completely different, some yield-starved investors have viewed dividend-payers as an attractive alternative to bonds, given the latter's low payouts and potential vulnerability in the face of rising interest rates... read more.
No comments:
Post a Comment