Kroger Can't Compete With 30-Year U.S. Treasury Bonds on Yield Alone. Here's Why the Dividend Stock Is Still a Better Buy for Long-Term Investors.
There's more to the decision than the yield you're plugging into today.
Overview
It's a fantastic time to be an income investor. The recent rise in interest rates has opened up opportunities well beyond the market's favorite dividend stocks.
Namely, interest rates on bonds are now higher than the dividend yields offered by a bunch of dividend-paying tickers. Indeed, yields on 30-year Treasuries have improved from 2024's low near 4% to their current multiyear high of just less than 5.3%, giving investors something to think about that they haven't needed to consider in a while.
Details
Even so, a much-lower-yielding stake in grocery giant Kroger (NYSE: KR) could still be a better choice for true long-term income-seekers. Here's why.
Source
Originally published at www.fool.com.