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
TheStreet Open House

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) .

Read More: 7 Stocks Warren Buffett Is Selling in 2014

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.

Read More: Dollar Stores Bidding War & Homebuilders Help Wall Street Rally

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

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,279.74 +13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASDAQ 4,579.7890 -13.6380 -0.30%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs