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Stock impact report

Market Snapshot: Dividend stocks attract investors as trade-war worries shake up markets [MarketWatch]

Westwood Holdings Group Inc (WHG) 
Company Research Source: MarketWatch
Dividend stocks attract investors as trade-war worries shake up markets A tumultuous August underlined the stock-market’s vulnerability to an escalating trade war while driving bond prices to lofty heights. Meanwhile, the accompanying drop in yields on Treasurys and other bonds — yields and bond prices move in opposite directions — eroded the attraction of government debt for some investors. As an alternative, money managers say investors may want to put some money in higher-dividend-paying equities that tend to outperform when markets swoon. “Conventional wisdom holds that you invest in bonds for yield and equities for capital appreciation,” wrote Jonathan Golub, chief equity strategist at Credit Suisse. But now, stocks offer the “best of both,” he said. Calls for investors to ditch bonds grew after the yield for the 30-year Treasury TMUBMUSD30Y, -0.11% briefly fell below the average dividend yield for the broad-based equity benchmark S&P 500 SPX, +0.06% this week for the firs Show less Read more
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