April 22, 2016

3 Cheap Big-Cap Stocks With Rising Dividends

See what stocks Henderson Global Equity Income fund and Henderson Dividend & Income fund are buying.


A top-ranked equity income fund manager has been adding shares of a Dutch bank, a German telecom and an American credit card specialist.


U.S. bond yields, widely expected to rise this year, have somehow done the opposite. The 10-year Treasury note yields 1.85%, down from 2.24% at the beginning of the year. Corporate bonds with a Moody’s rating of Baa, the bottom end of investment grade, pay 4.75%, down from 5.48%. Meanwhile, dividend yields on shares are little changed, with the Standard & Poor’s 500 index paying just over 2.1%.


By one measure, dividends are a relatively good deal. The S&P 500’s yield was recently 115% of the 10-year Treasury yield, versus an average of just 61% since the start of 2000. Outside the U.S., dividend yields are even richer relative to bond yields. Below are listed three stocks for dividend investors to favor now, two from Europe and one from the U.S...


Source: Barron's