Buy these stocks for high, sustainable dividends
The banking sector — and bank stocks — saw an intriguing
reversal in the 21st century.
For most of the latter 20th century, banks generally paid
depositors a higher rate of interest than bank stocks paid in dividend yields.
This trend reversed soon after the turn of the century and became more
pronounced after the 2008 financial crisis. Beginning in the early 2000’s,
interest-rate cuts gave bank stock investors dividend yields that exceeded the
rates depositors earned in interest. Although interest rates have begun to
gradually move higher in recent months, bank-deposit interest rates remain
extremely low by any measure.
Fortunately, some banks pay the 5+% returns comparable to
bank and CD rates in the 20th century. These 5 stocks show that earning substantial
cash payouts from banks remains possible — if investors take a chance on bank
stocks.
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