Shares of high-dividend-yielding companies are trading near the lowest level in almost three years relative to the market, as the prospect of higher interest rates makes these stocks less attractive to investors.
Emerging-market stocks declined to a one-month low, led by industrial and technology companies, on concern that a slowdown in China will hamper global economic growth. Russia’s ruble bond yields increased to a record.
Apple Inc. fell after reporting iPhone sales for the holiday season that missed analysts’ estimates, underscoring why it’s crucial for Chief Executive Officer Tim Cook to deliver new products to revive growth.
Utility stocks are a better choice for investment income than corporate bonds even though federal tax rates on dividends may be poised to rise, according to Jack Ablin, chief investment officer at BMO Private Bank.