Many income investors wonder whether bonds are better than
dividends and right now, dividends win, according to Investor’s Business Daily.
IBD reported that right now, more stocks with dividend yields
are outstripping Treasury bond yields than at any time since 1995.
Additionally, industry groups and sectors known for having stocks with
dividends are rising in IBD’s performance rankings.
Forty-two high-yielding dividend stocks appeared in one of
IBD’s screens on Monday. According to IBD, the same screen barely reached
double digits a few months ago.
Improving fundamentals and strengthening sectors are
boosting this trend. IBD reported that on Monday, IBD’s #2 sector was
Alcohol/Tobacco and the #5 sector was Utilities, both of which are known for
having a lot of dividend-paying stocks.
The best dividend stocks can be found each month in Dick Davis Income Digest.