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.