Dividends Are Sexier Than You Think

Last month, the dividend yields on American AAA corporations moved above the yield on 30-year Treasury bonds! That had never happened before.

Even after last week’s stock market rally (which pushed dividend yields lower), the stocks of America’s four AAA companies still yield about 3%, on average, which is not quite as high as the yield on 30-year Treasury bonds, but still much higher than the yield on every Treasury bond of 24 years or less.

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How to Live Off Your Investments

“Most people want to be rentiers,” said Elizabeth. “I know I do.”

Rentiers are people who collect “rentes” – that is, they are people who live on their investments. If you have an investment in an apartment building, for example, you collect rents. That’s why you own the building. You want the income.

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Dividend Payment Downtrend

By now, everyone and their mother knows the US stock market is a losing bet. The big indexes went nowhere over the last decade, absolutely plummeted in the last few years and now even the 2009 snap-back rally is officially kaput.

Thus, a logical question: Is it time to start buying stocks again?

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