Dividend stocks are a better investment than income properties: BMO economist

, BMO senior economist Robert Kavcic compares the yield from fixed income and dividend stocks to an income property,

“The economics of real estate investment get tough on a relative basis given that investors can secure a better yield in dividend stocks, or sit tight in risk-free cash/government bonds. The comparison to dividend stocks is an especially interesting one because both offer long-term capital appreciation potential, and both will see their payouts grow over time at least in-line with inflation.

“Rising Rates Still a Near-Term Risk. In early August we noted the market’s increased sensitivity to rates and expected a tougher tape until 10yr went sub-4.05 per cent; since then, the SPX is down 2.9 per cent and the 10yr rose to 4.3 per cent. We estimate that all-in 10yr rates have another 15 basis points of upside before firming… Bear in a China Shop.

Colombia Últimas Noticias, Colombia Titulares

Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.

TD bank analyst’s top picks ahead of earnings reportsDaily roundup of research and analysis from The Globe and Mail’s market strategist Scott Barlow
Fuente: globeandmail - 🏆 5. / 92 Leer más »