Higher prices dim appeal of dividend-paying stocks
Earnings growth rate among companies in S&P 500 declining for five consecutive quarters
DeeperDive is a beta AI feature. Refer to full articles for the facts.
FUNDAMENTALLY, dividend-paying stocks have had a terrific run for the past five years and have double-digit gains in the first three quarters of 2016.
But as money has been moving out of bonds and into these equities in search of income - dividend stocks are yielding 2.5 per cent, nearly a point higher than 10-year Treasury notes - investors find themselves in a quandary.
For one thing, traditional high-yielding areas of the market are trading at frothier levels than in recent memory.
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