Insights / Blogs

Insights / Blogs

On The Lookout

James Swanson, Chief Investment Strategist, helps readers make sense of the markets by sharing what he learns along the way.

Showing posts with label dividend. Show all posts
Showing posts with label dividend. Show all posts

February 24, 2015

Never Dive for Yield

In this low-rate environment, everyone is in the hunt for yield.
When looking for yield, take the time to ask the key questions.
It is important to remember that excess yields often have excess risks.


The interest rates we’ve experienced during our lives have declined, and the yield on bank deposits and certificates of deposit has fallen to almost zero. As investment income becomes scarcer, we face the temptation to reach or, more precisely, dive for yield. This is a quest with deep risks.