Zero interest savings result in flight to dividend stocks?

There seem to be a phenomenon of real estate investment trusts and blue chip dividend stocks running like nobody business.

A review of my dividend stock tracker seem to show a lot of the yield stocks’ yields compressing.

Starhub for no reason ran from $3 to $3.40. All the REITs are doing very well. So much so that there are only a handful of yielders having yields in excess of 8%.

What could be the reason?

Could it be the market volatility result in these stocks being perceived to be safer?

Could the low savings rate and high inflation result in people searching for better yields?

High yielding dividend stocks tend to do best in low growth environment (See article on historical behavior of dividend stocks)

Whatever it is, I am having trouble evaluating risk versus reward to add my monthly savings.

One thing we need to see is for the DPU for these stocks to go up to justify the rises in prices.

To get started with dividend investing, start by bookmarking my Dividend Stock Tracker which shows the prevailing yields of blue chip dividend stocks, utilities, REITs updated nightly.

Make use of the free Stock Portfolio Tracker to track your dividend stock by transactions to show your total returns.

For my best articles on investing, growing money check out the resources section.

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Kyith

Kyith is the Owner and Sole Writer behind Investment Moats. Readers tune in to Investment Moats to learn and build stronger, firmer wealth foundations, how to have a Passive investment strategy, know more about investing in REITs and the nuts and bolts of Active Investing.

Readers also follow Kyith to learn how to plan well for Financial Security and Financial Independence.

Kyith worked as an IT operations engineer from 2004 to 2019. Currently, he works as a Senior Solutions Specialist in Fee-only Wealth Advisory firm Providend. All opinions on Investment Moats are his own and does not represent the views of Providend.

You can view Kyith's current portfolio here, which uses his Free Google Stock Portfolio Tracker.

His investment broker of choice is Interactive Brokers, which allows him to invest in securities from different exchanges all over the world, at very low commission rates, without custodian fees, near spot currency rates.

You can read more about Kyith here.

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