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“Brexit” Boosts Attractiveness of Dividends

The U.K.s vote to exit the European Union makes dividend-paying stocks an even more attractive proposition for income-oriented investors. The Brexit vote sent interest rates lower across the globe. Central banks, including the Federal Reserve, are unlikely to raise interest rates amid present uncertainty. Indeed, the gap between dividend yields and bond market yields has reached wide levels in many countries (chart). Rates that stay lower for longer could cause yield-seeking investors to gravitate toward quality dividend paying stocks at home and abroad, in our view.Capture

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