Dividend payers attractive again as bond yields fall

Via Caroline Valetkevitch NEW YORK (Reuters) – Traders once again are snapping up excessive-dividend-paying U.S. shares as Treasury yields fall, which must preserve utilities and telecom stocks near the highest of the shopping for checklist for the near future. The S&P 500 utility sector , whose dividend yield at 3.9 p.c is greater than one hundred basis points above the ten-12 months Treasury yield , led the S&P 500's increase on Friday after difficulty concerning the launch of U.S. air strikes on Iraq drove the benchmark bond yield to 14-month lows. Any global worries that maintain a bid in govt debt, meanwhile, will motivate investors to head after shares with fat dividend yields. The utility sector is up 8.8 percent considering that Dec. 31, the 1/3 best possible-performing sector for the 12 months, following expertise and health care.