Stocks Offer: Higher-Dividend-Paying Equities and Money Managers

stocks offer: As an alternative, money managers say investors may want to put some money in higher-dividend-paying equities that tend to outperform when markets swoon, according to Market Watch. Conventional wisdom holds that you invest in bonds for yield and equities for capital appreciation, wrote Jonathan Golub, chief equity strategist at Credit Suisse. Meanwhile, the accompanying drop in yields on Treasurys and other bonds yields and bond prices move in opposite directions eroded the attraction of government debt for some investors. But now, stocks offer the best of both, he said. On Friday, the S&P 500 sported an average dividend yield of 1.92%, while the yield for the 30-year Treasury bond TMUBMUSD30Y, 0.00% stood at 1.988%. If you do have that flexibility, income alternatives within the equity space can look attractive once those lines cross over, said Marvin Loh, senior global markets strategist at State Street, in an interview. Calls for investors to ditch bonds grew after the yield for the 30-year Treasury TMUBMUSD30Y, 0.00%briefly fell below the average dividend yield for the broad-based equity benchmark S&P 500 SPX, 0.06% this week for the first time in a decade. (news.financializer.com). As reported in the news.