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Cover Story 2: Stocks with dividend yields of over 4% an attractive investment option


WITH the overnight policy rate (OPR) at a record low of 1.75% and with most economists pricing in another 25 basis point cut to 1.5% in the first quarter, savers with a higher tolerance for risk may opt for other alternatives for returns on their savings.
One option would be to invest in stocks that offer dividend yields of at least 4% or more, which is much higher than the prevailing fixed deposit rate of 1.75% to 2% offered by most banks.
“Dividend-yielding stocks are evergreen stocks as long as they keep paying. If you are buying [a stock] for dividend yields, then you should not expect too much from capital appreciation. ....

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