With bond yields as low as they are, there's no contest. The Fed's zero interest rate policy has created a situation where there's nowhere to go except the stock market.
Of course, the story will change once the Fed raises interest rates, which will make it more expensive for companies to borrow on the bond market. So there is a raging debate about when that will happen.
It is always better to own stocks in such situations. Those can hedge you against inflation. Fur sure, stocks are risky but if you look at the values of a company, and you avoid the big risks by not taking very cyclic stocks into your portfolio, you should be rewarded with a solid return.
Here are some alternatives with yields over 2% and a current buyback program worth over a billion dollar...
20 Stocks With A Billion Dollar Buyback Program And Yields Over 2% (click to enlarge) |