FYI: As bond yields keep falling amid worries about an escalating trade war and a slowing economy, dividend-paying stocks become more attractive to income-seeking investors. But picking the wrong ones can wreak havoc on your returns.
This year, yields on 10-year Treasuries have fallen over one percentage point to 1.675% as of Wednesday—their lowest level since 2016. Yet U.S. corporations continue to return cash to shareholders by increasing their dividend payments. According to Howard Silverblatt, an analyst at S&P Dow Jones Indices, this year’s total dividends of S&P 500 companies are expected to grow 6.2% from 2018—the 10th consecutive year of rising dividends in the large-cap index.
Regards,
Ted
https://www.barrons.com/articles/dodging-the-dangers-of-dividend-stocks-51565343003?refsec=funds
