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Dividend stocks are attractive following the Cliff deal, says BlackRock's Russ Koesterich,...

Dividend stocks are attractive following the Cliff deal, says BlackRock's Russ Koesterich, noting just a modest bump in dividend tax rates affecting just a small ratio of taxpayers. Current low payout ratios give companies ample room to raise payouts. Avoid Treasurys, he says, and focus on credit sectors (HYG, PDI, IVR - just to name a few), and municipals (MUB).
Comments (6)
  • Tony Petroski
    , contributor
    Comments (6373) | Send Message
     
    Why are dividend stock "attractive following the cliff deal?" Weren't they more attractive before the cliff deal.

     

    More and more this is the America we get: a declining nation led by Ivy League mediocrities telling us that things are only a little worse now than they were last year.

     

    How do you goose a market rally out of a tax on millionaires and billionaires, modest bumps in tax rates and the usual bump in pay for politicians and the unions they launder money through?

     

    There must be a class at Harvard 'splainin' that one.
    3 Jan 2013, 09:10 AM Reply Like
  • WhitneyB
    , contributor
    Comments (228) | Send Message
     
    Tony, you make an excellent point. The exuberance is likely unwarranted. But if the escalator is going up, I'll not question why. I'll just ride - with 5% trailing stops.
    3 Jan 2013, 11:35 AM Reply Like
  • ArtfulDodger
    , contributor
    Comments (2221) | Send Message
     
    Tony:

     

    It is amazing that 1% of the population centered in the Northeast tells the rest of the nation how things are going, how they should be, and really what the rest of us are going to have to put up with whether we like it or not. And they do it mostly through the media. Do they ever have anyone on those economic-stock-touting shows who're not part of the Northeastern comb-over crowd?

     

    How about the Supreme Court? Not a Southerner, Westerner, Mid-Westerner. Only a bunch of bald-headed Northerners and three of the scariest looking females (?) on the planet. Where the hell do they find these people (?)?

     

    Well, they're doing a jam-up job of running the nation — right into debt hell, a place where rights are constantly in jeopardy, an economy pumped up by phony money, and a welfare state with millions of people screaming for more.

     

    Good comment. Thanks! Keep swimming up stream; it's the only way to go.
    3 Jan 2013, 12:05 PM Reply Like
  • MexCom
    , contributor
    Comments (3051) | Send Message
     
    The Fiscal Cliff was only a publicity ploy by financial networks like CNBC to cause unnecessary alarm to increase their viewer ratings.
    3 Jan 2013, 10:01 AM Reply Like
  • Micro_Cap_Maven
    , contributor
    Comments (97) | Send Message
     
    I've been puzzled by the view that that an increase in dividend tax rates would suddenly make dividend paying stocks 'unattractive'. Commentators like Maria Bartiromo (sp?) at CNBC have been screeching about the disaster the Clff would be for dividend stocks since last June (!). So let's say the tax increase went through at 40% or more... where would you put your money as an alternative... CDs or treasuries?
    3 Jan 2013, 10:38 AM Reply Like
  • jerryu44
    , contributor
    Comments (111) | Send Message
     
    I'm putting mine in my mattress. ;>)
    3 Jan 2013, 11:28 AM Reply Like
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