A Good Time to Capture Dividends

The mystery of why the Fed did not start tapering in September was answered, presumably, by the pitiful jobs report. A taper was unlikely with the looming debt limit battle, but the jobs report confirmed that the recovery is not accelerating --  which seems to be a hard prerequisite for QE to end.

Whatever you think of the politics of it -- or the long-term implications -- the near-term reaction of the markets is making for an Oktoberfest of epic proportions. The S&P 500 is up 4.5% this month (almost as good as the blowout, greater than 5% performances in January and July), and interest rates are plunging back to old lows. Naturally, dividend yields are influenced by rates as well, so dividend stocks are having a blowout month as well. The chart below shows the plunge in 10-year rates (blue line) and the corresponding rally in the DVY....395 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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