But with the S&P 500 yielding only about 1.8 percent currently, other managers say investors must turn to sectors with higher-yielding stocks. "You want to have a combination of high-growth and high-yield [dividend-paying stocks]," says Daniel Peris, manager of Federated Strategic Value Dividend (SVAAX), which currently yields about 5 percent. (Cohen & Steers Dividend Value yields close to the S&P 500 average.) Peris currently favors consumer goods companies, as well as traditionally high-yielding, lower-growth sectors like telecommunications and utilities. Two of the fund's largest holding are Verizon and Duke Energy, both of which yield about 5 percent.
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Anastasia of MI 3:03PM March 15, 2011
Tim B of WA 8:22PM March 07, 2011