Forget Bonds: These 3 Brand-Name Dividend Stocks Offer Superior Income Potential
Even though the stock market has been the greatest long-term creator of wealth for investors, bonds have also earned their seat at the table. Buying a bond usually gives investors a nearly guaranteed rate of return that they can expect over a well-defined time frame. This certainty is what's made U.S. Treasury bonds an especially popular investment over the years.
However, today's Treasury Bonds are a far cry from year's past. Right now, a 10-year note will only net investors an annual yield of about 1.65%, which is actually lower than both the Federal Reserve's target inflation rate of 2%, and the 1.8% actual inflation rate over the trailing 12-month period. In other words, income seekers buying T-bonds would make money on a nominal basis, but they'd be losing money on a realized basis, when taking inflation into account.
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Source Fool.com
