The following is an excerpt from Philip van Doorn | April 9, 2016 | Marketwatch.com |
The strongest sectors of the S&P 500 this year include many shares of companies that pay high dividends and have kept investors’ faith by not cutting payouts for at least the past five years.
The two hot sectors are telecommunications services and utilities, and Howard Gold looked at the reasons for their strength.
These sectors are known to feature many stocks with high dividend yields. The market values of income-producing investments are sensitive to changes in interest rates, and all things being equal, that’s a concern when interest rates look set to rise, as is the case this year. But things aren’t always equal, especially if a company paying nice dividends is also growing its business.
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