Dividend stocks are being touted as a substitute for bonds, but the reality is much more complicated

  • 📰 nationalpost
  • ⏱ Reading Time:
  • 43 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 20%
  • Publisher: 80%

日本 ニュース ニュース

日本 最新ニュース,日本 見出し

Tom Bradley: Owning stocks makes sense, but it only works if — and it’s a big if — you stick to the strategy when markets are down

Last week on Bloomberg TV, I heard a strategist from Credit Suisse excitedly pronounce that investors are going to shift from bonds to stocks because the dividend yield on the S&P 500 is now above the U.S. Treasury bond yield. He went on to point out that not only is S&P’s income higher, but dividends grow over time while interest payments don’t.

There is a catch, however, and a particularly important one for retired investors. Banks, utilities, pipelines and REITs are stocks. The underlying companies may be big and stable, but their shares are priced on the not-always-rational stock market. Stock prices fluctuate considerably more than companies’ fundamentals.

So, if you’re receiving most of your investment income from stocks, or are contemplating going that way, I encourage you to do a gut check by answering the following questions. How did you handle market downturns in the past? Think back to the tech wreck and the great financial crisis . Your past investment behaviour will give you a clue as to how you’ll react to adversity in the future, although keep in mind that investing when building your wealth is considerably easier than when you’re spending it.

 

コメントありがとうございます。コメントは審査後に公開されます。
このニュースをすぐに読めるように要約しました。ニュースに興味がある場合は、ここで全文を読むことができます。 続きを読む:

 /  🏆 10. in JP

日本 最新ニュース, 日本 見出し

Similar News:他のニュース ソースから収集した、これに似たニュース記事を読むこともできます。

RBC kicks off big bank earnings with dividend hike, rise in profitRBC kicks off big bank earnings with dividend hike, rise in profit GlobeBusiness
ソース: globeandmail - 🏆 5. / 92 続きを読む »

RBC hikes dividend, posts profit gain as bank earnings kick offStrong results from personal and commercial banking as well as wealth management help offset a weak quarter in capital markets
ソース: globeandmail - 🏆 5. / 92 続きを読む »

Premarket: European stocks recover before Fed minutes, Jackson Hole gatheringPremarket: European stocks recover before Fed minutes, Jackson Hole gathering GlobeInvestor
ソース: globeandmail - 🏆 5. / 92 続きを読む »