Highest Yield Money Market Accounts

Admin | November 26, 2011 | Comments Off

Highest Yield Money Market Accounts

Highest Yield Money Market Accounts

The Quest for Investment Returns

There are two traditional ways of achieving investment returns. One method is through capital appreciation, such as an increase in stock prices. The second means is from income payments: dividends received from stocks and interest from bonds and other fixed income securities. Realizing return from the growth of investments became difficult after the stock market tanked in 2008. At the same time interest rates were the lowest in decades. Return from traditionally safe investments such as investment grade municipal and corporate bonds, certificates of deposit, money market accounts and treasuries were extremely low or non-existent. Where were investors supposed to go for growth and income?

The Advantages of Dividend-Yielding Stocks

One clear answer is stock dividends. Although many companies reduced or cut entirely their dividends during the financial crisis, most maintained their dividend. Many companies reinstated dividends and increased payouts as business once again improved. Stock dividends yield better returns in a low-interest environment than investment-grade bonds, CDs and government securities. And as a bonus dividend-yielding stocks offer the opportunity for capital appreciation.