Countless studies demonstrate that dividend-paying stocks outperform non-payers by a wide margin. From 1972 to 2006 dividend-paying stocks returned an average of 10% annually versus 4% for non-dividend payers, according to Ned Davis Research.
Right now investors are fleeing safe-haven assets like U.S. Treasuries and the dollar. And they’re putting the capital back to work in the riskiest of investments – emerging markets and IPOs.
Steve McDonald looks ahead to the investment climate in the new year. He sees a bounce in the Dow reaching as high as 11,000. But an economic recovery will depend on whether the Obama administration can restore confidence in the public. For 2009’s top money-makers, Steve picks six high-dividend stocks and two corporate bond plays.
Altria Group Inc.’s (MO) purchase of UST Inc. (UST), the largest smokeless-tobacco maker, could spark a wave of consolidation in the domestic tobacco industry.