Friday, August 6, 2010

Want Income? Buy Stocks, Not Bonds!

Did you know that as of today's close, fourteen (14) of the 30 Dow stocks have a higher yield than the benchmark 10-year US Treasury?  It's true!  Today, the 10-year closed with a paltry yield of 2.86%, down from a close of 2.99% on Monday.  As the anti-risk crowd piles up on one side, you should be taking a look at equities that not only afford a higher yield, but have much more room to run on the upside.  Here is the list of the Dow stocks currently sporting a higher yield than Treasuries:
1) Verizon (VZ) 6.43%
2) AT&T (T) 6.28%
3) Pfizer (PFE) 4.45%
4) Merck (MRK) 4.33%
5) Kraft Foods (KFT) 3.91%
6) DuPont (DD) 3.86%
7) Chevron (CVX) 3.64%
8) Johnson & Johnson (JNJ) 3.61%
9) Home Depot (HD) 3.29%
10) Procter & Gamble (PG) 3.22%
11) Coca-Cola (KO) 3.12%
12) McDonald's (MCD) 3.12%
13) Intel (INTC) 3.05%
14) General Electric (GE) 2.91%

Honorable Mention:
1) Travelers (TRV) 2.84%
2) Exxon-Mobil (XOM) 2.81%

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