Steady dividend-paying stocks are better money makers than bonds

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Rising U.S. interest rates could pressure stocks and make bonds more attractive — but maybe not as attractive as dividend-paying stocks would still be.

There’s a case to be made that solid companies which have paid dividends reliably and regularly for many years are in fact bond-like, in that shareholders can count on a predictable, in this case quarterly, income stream. Stocks are more volatile than bonds, to be sure, but with a stock you get the potential for share price appreciation, plus dividend increases, while pocketing income that, though not guaranteed, is highly likely based on the company’s track record.

Read about how dividend stocks can be bond-substitutes, then check out other stories for strategies and tactics to manage your money better, or to communicate better with those who manage your money.

— Jonathan Burton

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