Ferri: Dividends May Lure Investors Back to Stocks
Given current yields on stocks versus bonds, it may be an intelligent move for investors to allocate assets to dividend-payers, says Portfolio Solutions' Rick Ferri.
Benz: You recently wrote a piece, Rick, where you looked at dividend yields actually being higher than Treasury bonds. What do you think investors should make of that? I have heard from some investors, where they are saying I want to take a piece of my bond portfolio and put it into dividend-paying stocks. Does that make sense to you as a strategy?
Ferri: Interesting what happened here. It has been 50 years since the yield on stocks has been higher than the yield on 10-year Treasury bonds, 50 years. You have to go all the way back to the early 1960s to see that.