Dividend Stocks: the best place to invest

Fed killing bonds? Buy dividend stocks


Now is a great time to buy blue chip companies with steady payouts. Forget about Treasury bonds, the dollar, gold or other so-called safe haven bets. Dividends are the place to be.

Ford (F, Fortune 500) just reinstated its quarterly payout after five years without one. The yield will be a respectable 1.8% -- not much lower than the yield on the benchmark 10-year Treasury.

Earlier this year, tech giant Cisco Systems (CSCO, Fortune 500) finally decided to put some of its "caysh" to work and started paying a dividend. It yields 1.3%.

And companies that are dividend stalwarts, such as Dow components Walt Disney (DIS, Fortune 500), General Electric (GE, Fortune 500) and Pfizer (PFE, Fortune 500), have all recently said they are boosting their dividends.


So why on Earth would anyone looking for safety in income buy a bond when they could a blue chip company with an even higher yield instead?

"There's a lot of risk in longer-term bonds. Treasuries will only do well if the world comes to an end," said Rex Macey, chief investment officer with Wilmington Trust in Atlanta. "You can't buy a 10-year with the yield at 2% and expect a real return. Quality dividend stocks are bargains compared to Treasuries."

Comment: Of the above mentioned stocks we have F, CSCO (in IRA), GE, and PFE (in IRA). I almost sold F this year. Decided to keep it (we only have 100 shares).

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