Dividend stocks pay where notes do not; Bulls feeling pressure at these altitudes?

Welcome to Karpel’s Corner. This is where I throw out my thoughts on the markets and share some of my favorite strategies. I keep it market-focused, and never miss an opportunity to teach trading strategies and commentate on the latest trends affecting the financial markets. Hope you enjoy today’s post!

I have mentioned in the past few weeks that one of the best performing sectors has been utilities ($XLU), and I did get a lot of e-mails asking why.

The simple answer is that the Treasury Markets, specifically the 10 year ($TNX), have had diminishing yields through out the year. If you overlay that performance of yield of the 10 year versus
Dividend stocks ($DVY), the dividend stocks yield hogs continue to add to positions.

We see that the global markets are under pressure and tensions in the Middle East are still on the rise. These are only further catalysts for these high dividend stocks.

Drugs ($PPH) and Healthcare ($XLV) are also gaining more momentum. Could be the pressure that this seemingly endless up-trending market is getting to market plays and safety stocks with better yields than the notes and bonds offer. Worth keeping an eye on.

See you next time at the Corner!