Cover Story 2: Stocks with dividend yields of over 4% an attractive investment option
WITH the overnight policy rate (OPR) at a record low of 1.75% and with most economists pricing in another 25 basis point cut to 1.5% in the first quarter, savers with a higher tolerance for risk may opt for other alternatives for returns on their savings. One option would be to invest in stocks that offer dividend yields of at least 4% or more, which is much higher than the prevailing fixed deposit rate of 1.75% to 2% offered by most banks. “Dividend-yielding stocks are evergreen stocks as long as they keep paying. If you are buying [a stock] for dividend yields, then you should not expect ...
Source: theedgemarkets.com