Interest rates are at record lows across the globe. In the United States, the S&P 500 offers a dividend yield of around 2%, barely enough to keep up with record low levels of inflation. Fixed-income securities are even worse. The iShares 10-20 Year Treasury Bond (NYSE: TLH) is yielding 2%, close to an all-time low. CDs and savings accounts offer virtually no return. In this environment, investors are desperate for strategies that will help them generate consistent and reliable income. #-ad_banner-#Most investors are content to stick with dividend-paying blue-chip stocks in defensive industries. Read More
Interest rates are at record lows across the globe. In the United States, the S&P 500 offers a dividend yield of around 2%, barely enough to keep up with record low levels of inflation. Fixed-income securities are even worse. The iShares 10-20 Year Treasury Bond (NYSE: TLH) is yielding 2%, close to an all-time low. CDs and savings accounts offer virtually no return. In this environment, investors are desperate for strategies that will help them generate consistent and reliable income. #-ad_banner-#Most investors are content to stick with dividend-paying blue-chip stocks in defensive industries. This makes sense. Stocks like Verizon (NYSE: VZ) are not particularly sensitive to economic cycles. Even if the economy falls into a recession, very few people will cancel or change their mobile service. That’s why Verizon was just one of a few S&P 500 companies able to grow its dividend through the financial crisis in 2008 and 2009. Its current 4.4% yield ranks as one of the best dividends in the S&P 500 — well above the index’s average yield of 2%. I also consider Verizon to be one of the safest dividends in the… Read More