Dividend-Paying Equities Rank Among the Best Investments in the New Year

As 2020 approaches, dividend-paying equities rank among the best investments in the new year partly due to many of them producing significantly higher yields than traditional 10-Year Treasuries that currently offer 0.92%. Dividend-paying equities also should benefit from a split Congress that usually produces favorable market conditions, the expected appointment of former Federal Reserve Chair Janet Yellen as the next Treasury Secretary and the likelihood of sustained easy-money policies from the U.S. central bank previously discussed by its Chairman Jerome Powell.

The growing appeal of dividend-paying equities has led certain investors to adjust their asset allocation toward stocks, while reducing holdings in 10-Year Treasuries and other fixed-income investments. For example, Kevin O’Leary, chairman of Boston-based O’Shares ETFs and a wealthy panelist on the “Shark Tank” television program, said in a recent podcast that his family trust has shifted to a 70% allocation in equities and a 30% share of fixed income, compared to its previous 50-50% split in each.

Source: Dividend Investor

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