'Bernanke-Proof' Your Portfolio With These Dividend Growers
Will interest rates continue their recent ascent? If so, many investors will come to question the wisdom of holding dividend-paying stocks. After all, bonds and CDs are virtually riskless, and if they sport more attractive yields, why bother with riskier stocks? The simple reason: Interest rates (such as on the 10-year Treasury note) are unlikely to move past 4%, as I noted recently. Any stock with a yield above that threshold should still hold appeal -- as long as that dividend doesn't look vulnerable to a reduction or elimination in a changing economic environment. Yet there is a whole different type of income-producing stocks that fail to meet that 4% yield threshold but should still hold great appeal. These are the stocks with fairly low yields right now but look poised for robust growth, which should set the stage for future yields well above 4%, using... Read more