Dividend logo

In the current investing environment, dividend stocks are in favor. Only late last year did the Federal Reserve finally raise interest rates—for the first time in nearly a decade. In the aftermath of the financial crisis and recession of 2008, the U.S. central bank lowered interest rates to zero, in an attempt to reignite domestic economic growth.

This worked to lift the U.S. out of recession, but a negative consequence of this policy is that any investor who desires income from their investments, such as retirees, are being paid little to no interest on traditional income producing products like bank certificates of deposit. Even the 10-year Treasury Bond yields just 1.75% today.

This means investors are thirsty for yield. To quench that thirst, investors have plowed into dividend stocks like water utilities. The utility sector, and in particular water utilities like American Water Works (AWK ), are a haven for income investors. This stock has performed well over the past year and rewards investors with a growing share price and 2% dividend. American Water Works is a top dividend stock for its secure business model, stable earnings, and reliable shareholder distribution.

To read the Full Story, Go Premium or Log In

Popular Articles

Premium Market%20performance%20charts
News

The Market Wrap For January 18: A Critical Earnings Season Begins

It’s no secret that the market’s direction has all been news-driven. The news about the trade...

News

Trending: Vodafone Dividend at Risk as Challenges Mount

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

Premium Value%20stocks
News

Value Stocks Are Dirt Cheap & That’s Wonderful News For Dividend Investors

Pull up any broad chart and you’ll notice one thing. That is, the markets have been focused on ‘...