Remember back when rock-bottom interest rates had investors drooling over income stocks? Well, those days have been waning as of late.
The 10-year Treasury’s continued march north hit a milestone yesterday, briefly touching the 3% mark before receding back to around 2.9% today — still good for the note’s highest yield in more than two years. While yields have been driven up by continued fears about the Fed taking away the stimulus punch bowl, data showing jobless claims at their lowest level in almost six years provided Thursday’s spark.
At nearly 3%, Treasuries now sit around a yield mark once reserved by many as the floor for a “good yield on a dividend stock. But that doesn’t mean income stocks should be dropped altogether — investors should simply consider raising their standards.
The following three dividend stocks still easily trump Treasury notes, and are arguably just as safe. Take a look: