Income Providers

Katherine Garrison Geary: Oh, Ed, what do Alice or I know about newspapers?
Ed Hucheson: It gives you an income.
--Deadline U.S.A.

To the extent that earnings yield translates into dividend yield, chart shows why bids are unlikely to be completely lost under dividend-paying stocks in today's market environment. In fact, would think chart of SPX dividend yield vs bond yield would show a similar pattern.

Spread between S&P 500 earnings yield & BBB corporate bond yield widest since 2014 @SoberLook @bloomberg pic.twitter.com/vZcYaDgQY1

— Liz Ann Sonders (@LizAnnSonders) February 26, 2020

If you're looking for investment income, and you're not particularly sensitive to changes in principal/account value, then dividend-paying stocks seem a good deal relative to fixed income. Stocks are generally far more capable of providing income in today's world.

Key is finding dividend payers where yield is likely to be stable/growing even in difficult environments.