Skip to Content
Investing Specialists

Dividend-Paying Stocks Continue to Garner Attention

While our list of Ultimate Stock-Pickers is not imbued with equity-income investors, the allure of dividend-paying stocks has not gone unnoticed by our top managers, especially with bond yields at historically low levels and interest rates bound to go up over the next several years.

Mentioned: , , , , , , , , ,

By Gaston F. Ceron | Stock Analyst

While global equity markets have regained some of their footing during the third quarter, we don't believe that this signals an end to market volatility. With Europe continuing to deal with what has become an expanding debt crisis, most developed economies around the globe struggling to maintain any kind of positive momentum, and growth in emerging and developing markets like China and Brazil stumbling as a result, we don't see much that will change what has been a macro-driven market for investors. We continue to believe that this ongoing volatility has affected investor behavior, causing them to rapidly alter their risk tolerances and asset class preferences in response to short-term news and investment performance. Not surprisingly, in an environment exemplified by market volatility, fixed income, which some investors consider to be "safer" investments than equities, continues to be the asset class of choice for investors putting capital to work, with year-to-date flows for taxable bond funds, according to data provided by Morningstar Direct, reaching $202 billion at the end of August, surpassing the $177 billion that flowed into the category last year, and putting 2012 on pace to hit the level of inflows seen for taxable bond funds overall in 2010 (when $246 billion flowed into taxable bond funds), and quite possibly 2009 (when we saw more than $329 billion flow into the category).

The Morningstar Ultimate Stock-Pickers Team does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.