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.


Think twice before you join the stampede.


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