This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The Never-Ending Search for Yield Leads to U.S. Dividend Stocks

NEW YORK ( TheStreet) -- U.S. interest rates remain near record lows, forcing investors to continue on the never-ending search for yield. That path may lead them directly into U.S. dividend stocks.

iShares Dow Jones Select Dividend Index (DVY) has rebounded by 3% after declining throughout the month of July. The dividend exchange-traded fund is mostly weighted by Lockheed Martin (LMT) , Chevron (CVX) , Philip Morris International (PM) , ConocoPhillips (COP)   and McDonald's  (MCD) .

 DVY Chart

DVY data by YCharts

Interest rates have been pushed lower in the United States on geopolitical and economic reasons. For most of the year, fear of violence overseas in Gaza, Iraq, and Ukraine have pushed funds into U.S. assets, such as iShares Barclays 20+ Year Treasury Bond (TLT) and PowerShares DB US Dollar Index Bullish (UUP) .

The rush of funds has accelerated recently as weak economic data in Europe and the U.S. led investors to believe few developed economies were interested in raising benchmark lending rates anytime soon.

As global interest rates have been pushed to record lows, investors have been forced to seek out relatively safe investments that can also deliver some semblance of return.

That journey has led them back into U.S. stocks, and more specifically dividend-bearing stocks. U.S. dividend stocks offer the safety of being in a moderately growing economy, alongside steadily improving corporate earnings.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $117.34 -0.81%
FB $107.12 2.76%
GOOG $767.04 3.29%
TSLA $237.19 3.01%
YHOO $33.71 -0.30%


Chart of I:DJI
DOW 17,888.35 +168.43 0.95%
S&P 500 2,102.63 +22.22 1.07%
NASDAQ 5,156.3060 +47.64 0.93%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs