Quantcast
Are you getting the best rate from your broker?
Compare your broker's rates now to find out if you can save money

Choose your broker below
Welcome to Dividend.com. Please help us personalize your experience.

Select the one that best describes you
Dividend logo

The market has been anything but typical the past couple of years and it’s all thanks to the Federal Reserve.

The Fed rightfully cut interest rates during the Great Recession and credit crisis in order to spur borrowing/economic activity. The problem is, because things haven’t played out the way the Fed wanted, rates have been stuck in the basement for years now. (That token quarter-percent raise doesn’t really count.)

For income seekers – namely the millions of retiring baby boomers – it’s left them scrambling to find meaningful ways to pay for their retirements. Traditional income products just aren’t cutting it. So, it’s no surprise that dividend stocks have been a hot commodity over the last few years.

However, in the rush to dividend payers, we may have gone too far – especially considering how close we are to another rate hike from the Fed. And yet, maybe we haven’t really stretched valuations on dividend payers at all.

Getting Kind of Lofty…

9.01%. That’s the return – without dividends – for Utilities Select Sector SPDR Fund so far this year. This is a pretty amazing return for such a ‘sleepy and boring’ sector. Usually, a utility’s total return (dividends and capital appreciation) is about that much. So, it goes to show just how much investors are in love with dividend stocks these days.

To read the Full Story, Go Premium or Log In

Popular Articles

Premium Shutterstock 412610572
News

The Market Wrap for January 19: Investors Pay No Attention to Possible Government Shutdown

Despite the possibility that the U.S. Federal Government is once again going to shut down on...

News

Trending: Ford Says Goodbye to Mass-Market Cars

Dividend.com analyzes the search patterns of our visitors each week. By sharing these trends with...

Dividend Investing Ideas Center

In Spite of the 90% Rule, Why Do Some REITs Have Poor Payout Ratios?

Real estate investment trusts (REITs) have grown in popularity since the financial crisis, so...