Dividend-payers hold the edge over bonds

"A good place to be," says TDAM's Michael Lough.

Sonita Horvitch 7 November, 2012 | 7:00PM
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Michael Lough, vice-president and director at TD Asset Management Inc., says the case for investing in dividend-paying stocks remains intact, particularly given the expectation that the low-interest environment will persist for some time.

"The dividend yield on the S&P/TSX Composite Index is higher than the yield on both five- and 10-year Government of Canada bonds," says Lough, who specializes in managing income-oriented equities.

Lough considers it unlikely that there will be an increase in Canadian interest rates for two years or so, in the light of all the global economic uncertainty. Given this low-rate climate, "many investors in search of income have been moving up the risk spectrum to buy dividend-paying stocks."

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Sonita Horvitch

Sonita Horvitch  

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