With bond yields so low and the potential downgrading of bonds, is it a good idea to substitute dividend-paying stocks for bonds? Some would say yes, since dividend-paying stocks yield more than some bonds, and have more upside potential. But thereâ€™s no getting around the fact that stocks, including dividend-paying stocks, are generally more volatile than bonds. Substituting dividend-paying stocks for bonds will lead to a higher risk portfolio.
1. In this video, the expert recommended the Asian Telcos?Â What types of stocks is he referring to?
2.Â How do you calculate the dividend yield ratio for a stock?Â What do these experts say that this should be compared against when making this decision to switch to dividend paying stocks?
3. Why did the S & P downgrade the outlook for fiscal challenges facing the U.S. on April 18?Â What effect will this have on bonds?
4.Â What are the risks of putting your money in dividend-paying stocks as compared to bonds?
CNBC Video. (2011). Investing in High Dividend Yield Stocks (Retrievable online at http://video.cnbc.com/gallery/?video=1888416221)