Dividend Stocks Vulnerable To Fed Taper Hit

Dividend stocks – dubbed “the new fixed income” as investors search for yield amid historically low interest rates – could be among the investments most sensitive to US Federal Reserve chairman Ben Bernanke’s impending pronouncements on monetary easing, reports the Financial Times.

US utilities stocks are down 8.7 per cent and telecommunications equities 3.9 per cent lower since the end of April when talk began that the Fed may taper its quantitative easing programme, making them the two worst sectors in the US equity market.

Source: FT Adviser

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