Looking to Earn More Income? These Dividend Stocks Are Better Alternatives to Bonds.
Bonds are great for those seeking to generate investment income. They typically make fixed-income payments, providing their investors with predictable cash flow.
However, a drawback of fixed income is that inflation erodes its buying power over time. A potentially better alternative is to invest in high-yielding dividend stocks that can steadily increase their payments. Kinder Morgan (NYSE: KMI), (NYSE: VZ), and W.P. Carey (NYSE: WPC) stand out for their bond-like income streams that should continue rising in the future.
Kinder Morgan currently offers a 6.6% dividend yield. That's a higher income yield than most high-quality bonds. For example, the 10-year U.S. Treasury bond currently yields about 4.3%, while the average investment-grade corporate bond has a yield to maturity of less than 6%. That means investors can generate more income per dollar invested in Kinder Morgan's stock.
Source Fool.com
Verizon Communications Inc. Stock
The stock is one of the favorites of our community with 23 Buy predictions and 1 Sell predictions.
With a target price of 42 € there is a slightly positive potential of 13.7% for Verizon Communications Inc. compared to the current price of 36.94 €.
