Dividend Stocks Shine In a Low Interest Rate Environment

There was a time not so long ago that investors looking for a sure thing would have T-bills and certificates of deposit (CDs) as their dominant investment tools for a safe, usually healthy return. But that's not the case anymore. Gone are the days that a retiree can rely on Social Security, Medicare, or a pension to pay for their retirement.

Dividend paying stocks have become an increasingly attractive option due to low interest rates. The stronger companies in the S&P 500 offer an annual dividend in the 3 to 7 percent range. Not only will you have the usually consistent income from the cash dividends, but also you'll be an equity stakeholder. Usually it's the better-performing companies that pay dividends, so it's likely that you'll enjoy capital gains with dividend paying stocks as well.

Source: SmallCapInvestor.com

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