The current low-rate environment is largely the product of quantitative easing (QE), the ongoing monetary stimulus program conducted by the Federal Reserve in the wake of the financial crisis. QE put additional downward pressure on interest rates and effectively drove investors out of traditional debt securities like the 10-year T-note. There’s just not enough yield to go around at 2.4 percent; investors want their money to work harder than that.
The hunt for yield has led many investors to the equity market and, in particular, to high-yield dividend stocks. These stocks traditionally represent companies like Coca-Cola (NYSE:KO), Procter & Gamble (NYSE:PG), and Exxon-Mobil (NYSE:XOM): stable companies with well-established cash flows and a history of dividend increases. In short, cash machines.
Source: Wall St. Cheat
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Posted by D4L | Thursday, June 12, 2014 | ArticleLinks | 0 comments »________________________________________________________________
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