Outyielding Blue Chips

Browsing the business section of the local paper enabled one to pick up stocks with dividend yields of 4.0% or greater.

No intelligent investor, no matter how starved for yield, would ever buy a stock for its dividend income alone; the company and its businesses must be solid, and its stock price must be reasonable.

But, thanks to the bear market that began the last few months, some leading stocks (blue chips) are now outyielding FDs.

So, even the most defensive investor should realize that selectively adding stocks to an all-bond or mostly-bond portfolio can increase its income yield - and raise its potential returns.

Ref: modified version based on Intelligent Investor by Benjamin Graham