Dividend Investors: Don't Panic

A spike in 10-year Treasury yields has underpinned a widespread drop in bonds. Bond equivalent stocks, the kind that pay high dividends, have been collateral damage. Many dividend investors have no doubt been hurt by the rate spike and are now moving toward the exits. But that's a mistake.

Sure, fear of an end to the 30-year-plus bull market in bonds is justified, but dividend investors shouldn't panic. Higher rates aren't something to be afraid of. If the Federal Reserve has any say in the matter, higher rates will be accompanied by a stronger economy. Ultimately, that is good for both earnings and dividends. And for once, savers will be rewarded instead of punished for their thrifty ways....397 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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