Looking For Income Now?

Over the past month or so, we've seen some rocky times in the financial markets. On one hand, stocks have fallen sharply, with the S&P down more than 10% from its April highs. What hasn't been reported so widely, however, is the nearly opposite reaction that the U.S. bond market has had to all the current troubles around the world. While European sovereign debt problems have called into question the viability of the euro as a currency, Treasury bonds have seen their prices soar and their yields plummet. Just since early April, the yield on the 10-year Treasury has fallen from nearly 4% to just 3.15% yesterday. The 30-year yield has gone from 4.85% to just over 4.05%.

But if you have money to invest now, you won't benefit from those capital gains on bonds. Rather, you'll be locking yourself into bonds at lower yields. In contrast, though, hard-hit dividend stocks have seen their yields increase substantially in the past several weeks. I searched for stocks with yields of 3% or more whose shares had dropped by at least 10% in the past month.

Source: Motley Fool

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