Dividend Stocks Fall on Rising Rate Forecast: EcoPulse
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Shares of high-dividend-yielding companies are trading near the lowest level in almost three years relative to the market, as the prospect of higher interest rates makes these stocks less attractive to investors.
The Dow Jones U.S. Select Dividend Index has lagged behind the Standard & Poor’s 500 Total Return Index by 4.5 percentage points since April 30, 2013 as of 10 a.m. in New York. During the same period, the yield on 10-year Treasuries has risen to 2.65 percent from 1.67 percent.