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Market Update

Dividend Stocks Are Back, Fixed Income Not So Much

The value rotation has given new life to laggard equity-income strategies.

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After a brutal 2020 for dividend stocks, income-generating names are paying off for investors in 2021. But for investors who look to bond strategies for income, this market has been a struggle. And from an income perspective, stocks still offer attractive yields relative to bonds.

As the global economy recovers, inflation is on the rise and value has trounced growth. Equity market leadership has rotated away from the pricey, fast-growing stocks that had been leading the market's bounceback from the pandemic collapse.

Dan Lefkovitz has a position in the following securities mentioned above: DIS. Find out about Morningstar’s editorial policies.