A Hit List for the Unadventurous

Since the demand for safety is at a premium and the U.S. equity market is suddenly viewed as the toast of the globe, a portfolio of high-dividend-paying U.S. stocks has fared quite nicely in recent months. For instance, integrated telecommunications juggernauts AT&T (T) and Verizon (VZ) have each rallied as much as the broad market off the October 2011 lows, in spite of paying yields that were in excess of 5% and with historical betas of only 50% of the S&P 500. Talk about a free lunch!

However, as is often the case, success can lead to excess. According to the recent valuation of the iShares High Dividend Equity Fund (HDV), this sector of the market is now pricing somewhat rich....708 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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