Sunday, December 13, 2009

ZWEIG: Reach for Stock Yield, and You Might Get Bit

With the income from bonds withering away, investors are piling into dividend-paying stocks.

Even Bill Gross, the influential bond guru who oversees $1 trillion in fixed-income investments at Pimco, has been urging investors to move out of low-yielding bonds and savings accounts into utility and telecom stocks with high dividends.

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Think twice before you join the stampede.

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In any case, don't kid yourself into thinking stock dividends and bond interest are interchangeable. They aren't.

Article.