10-year treasury yields have dropped below 3%, as investors seek ‘safety’ in U.S. government debt.
Buying government bonds has been a remarkably good trade lately.
Thing is, while government bonds are generally seen as defensive, the sub-3% yields they pay right now aren’t much compensation for the risk of dollar depreciation, future U.S. interest hikes, or inflation over the net 10-years.
Meanwhile, there’s a raft of major U.S. stocks paying higher yields via dividends than government bonds, even after screening for only the companies who have paid their dividend for at least the last 10 years.
Thus here’s a collection of historically stable dividend payers, who are offering more yield than the U.S. government to park your money. Stocks are obviously different than government bonds, but if you’re confident in the prospects for a company that pays a higher yield than bonds already, and has paid dividends for a long time, then it might be a more compelling opportunity than parking your money with Uncle Sam and rolling the dice against potential inflation or dollar weakness for a paltry 3%.
These are 1) large companies with 2) at least 10 years of dividends paid and 3) over a 3% yield. All data is from Dividend.com.
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