The new tax is even more reasonto move income-generating investments such as high-yield bonds or high-turnover mutual funds into tax-sheltered accounts such as IRAs, says Eric Lewis, a principal at Bedrock Capital Management, a financial-planning firm in Los Altos, Calif.
These metrics define the main backdrop for stocks being too cheap to ignore, and the extremely low yield for the 30-Year bond is the main reason for cheap equity valuations.
Another reasonto like dividend stocks is they tend to be less volatile over time because yield provides support: a stock yielding 5% is less likely to get cut in half and yield 10% than a non-dividend paying growth stock or a low-yielding stock.