Bond Yields Suck – So Why Debate the 30-Year vs. the 10-Year? Herewith Some Income Alternatives

It’s getting to be a routine: Treasurys markets hit new lows yet again. Once again, investors are all panicky about troubles in Europe and throwing money at the U.S. government.

Few believed yields would go this low. But now that they have, some investors seem to think this is a permanent thing. There’s even a catchphrase of sorts, that bonds will stay “low for long.” The Wall Street Journal, seemingly resigned to the inevitable, points out it’d be better to buy 30-year Treasuries over 10-years because you get a slightly better yield – that would be a real yield just above zero.

30-Year Treasury Bond Yield Chart

30-Year Treasury Bond Yield data by YCharts

Go ahead and lock in low for long if you insist. If you’d like to check out alternatives, read about them here and here. And what kind of yields can you get now in dividend-paying stocks, especially ones that consistently increase their dividends? One might look at Chevron (CVX), Monsanto (MON), Nike (NKE), Norfolk Southern (NSC) and Exxon (XOM).

Here are the dividend yields on some stocks mentioned in this recent story:

CVX Dividend Yield Chart

CVX Dividend Yield data by YCharts

You can get comparable or higher yields without locking up your money for a generation. And if you find a company that increases its payouts over time, you'll lock in long-term growth instead of no growth at all.

From the editors of YCharts.YCharts Pro Investor Service includes professional stock charts, stock ratings and portfolio strategies.



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