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These Quality Dividend Payers Are on Sale

Stock investors looking for extra income and potential capital appreciation should check out these wide-moat names.

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For many income-oriented investors frustrated by the low payouts available from bonds, the search for added yield continues. And with the Federal Reserve saying it plans to keep interest rates low until at least late 2014, there's been little for savers and income-seeking investors to get excited about with regard to a light at the end of the low-yield tunnel.

Some of these investors who are willing to take on added risk are finding stocks to be an attractive option. The S&P 500 index of large companies currently yields around 2.25%, and many dividend-paying stocks yield far more than that. Meanwhile, the Barclays Capital Aggregate Bond Index, a widely used proxy for the U.S. investment-grade bond market, yields less than 2% currently, and most money market fund investors are barely in the black.

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Adam Zoll does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.