Dividend Stocks: A Better Alternative to Bonds
Published Jan 17, 2011 on Seeking Alpha

My previous article explained my negative outlook for the bond market, and also promised an alternative to fixed income. As I'm sure you have guessed, the answer is dividend stocks. The proper approach can provide the reliable income associated with bonds, and also the unlimited upside characteristic of equities. This article will delve into the process for choosing suitable equities to replace and/or augment bonds in your portfolio. According to Robert Shiller, the current dividend yield of the S&P 500 is 1.74%. Now I know you're saying, "That's only half the yield on the 10-year T-Note." That's true, but consider the growth rate of dividend payouts for several blue chip firms: CAT, MCD, and PG.... Read more