As attractive as today's yields may look on certain dividend-paying stocks, they only tell part of the story when you're choosing names for income.
Lower interest rates make other income-generating assets, including dividend-paying stocks, more attractive compared to the risk-free yields on Treasurys.
Dividend stocks took their lumps during 2022 as the Fed embarked on its rate hikes – consider that the Vanguard Dividend Appreciation ETF (VIG) posted a total return of negative 9% in 2022 – and rate-sensitive income stocks in the utilities and real estate sector suffered.
Check with your brokerage to make sure you have dividends reinvested as your preference for individual stocks and ETFs.
Picking the right names Dividend investors are seeing 2024 as a potential rebound year for these stocks, anticipating a broadening rally.
Persons:
Michael Arone, Dow, VIG, would've, Grace Lee, –, Dow Jones, Arone, Chris Hayes
Organizations:
SPDR, State, Federal, Dow Jones, Fed, Vanguard, CNBC Pro, IBM, Columbia, Opportunity, Walgreens, Alliance