Dividend stocks have retained their appeal even as the market notches new all-time highs in 2014 — but average yields are indeed coming down. That’s what happens when dividend stocks rise on a price basis without increasing their payouts.
Indeed, the yield on the S&P 500 is down to 1.91%. A month ago, it stood at 1.98%, and a year ago it was 2.19%.
At the same time, yields in fixed income are becoming more attractive as bonds continue to sell off. The yield on the benchmark 10-year Treasury note is up to 2.88% and recently crossed the 3% threshold for the second time in the last year.
Of course, the trend in bonds is down with further weakness to come, while the rally in equities shows no sign of letting up. And although the market’s march to new highs feels great, don’t forget that income investors with cash to deploy usually have to contend with lower yields on dividend stocks when prices on those shares rise.
Happily, generous yields on dividend stocks abound in America’s main market benchmark. Indeed, some of these names look like firehoses of income. So where can you find the highest yields among dividend stocks in the S&P 500? Read on to find out: