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5 Dividend Stocks Singled Out By Morgan Stanley
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Published Wed, 13 Jun 2012 12:09:49 -0400 on Seeking Alpha
In a recent research note to clients, Morgan Stanley (MS) identified a list of dividend stocks that it considers "safe and fundamentally and quantitatively attractive." The investment bank concludes that the current low-yield environment makes high dividend yields of stable companies highly desirable. Treasury yields are breaching new lows, while the S&P 500 index is generating a low yield of 2.2%. Many stocks with strong fundamentals are yielding double the comparable rates on Treasuries and the broad market. The bank also argues that the current payout ratio for the broad market is near historical lows, (hovering around 30%, according to research by Yale professor Robert Shiller) which gives room to potentially significant dividend hikes in the future. Although the beneficial tax treatment of long-term dividends may expire soon, Morgan Stanley believes that development should not reduce the appeal of dividend stocks with strong fundamentals. Below is an overview of five... Read more


