Bond funds vs dividend stocks
A mutual fund is a type of investment vehicle consisting of a portfolio of stocks, bonds, or other securities, which is overseen by a professional money manager. more Average Annual Yield Dividend Stocks vs. Bonds: Comparing Risk-Adjusted Returns. The trailing 1-year Sharpe Ratio for dividend stocks and bonds can be seen below. Source: YCharts. Admittedly, the graph above is a bit noisy and is hard to draw a conclusion from. While it appears that dividend stocks tend to have a higher Sharpe Ratio than a diversified basket of bonds during most time periods, there are notable stretches (including the 2007-2009 financial crisis) where this does not hold true. B y Chloe Lutts. Editor of Dick Davis Investment Digest. and Dick Davis Dividend Digest---How to Recognize Bond Market Extremes. It's Time for a New Paradigm. Stocks to Start an Income Portfolio