Beat The Market With ‘Safe Dividends’

With bond yields near record lows, high-dividend stocks are increasingly more attractive, says Dan Genter, CEO of the company behind the RNC Genter Dividend Income Fund. The key, Genter says, is finding the companies with the safest cash flows, from which dividends are paid. The mutual fund, started at the end of 2008, has risen 8% this year, better than three-quarters of its Morningstar peers. Over the past year, the fund has returned 12%, beating 85% of its rivals.

What you have in the high-dividend area is consistency. Usually you have more substantial companies with strong earnings growth that will lead the way. And let's face it, if we are going to have an 8% to 10% environment and we start off the year getting 4% to 5% right out of the gate, then we've already picked up nearly half of our returns and beaten 10-year bonds in the process.

Source: CNBC

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