August 19th, 2010 
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Investors who have became frustrated souls after watching their incomes getting evaporated because of plunging bond yields are turning up to dividend-paying stocks, and they’re being rewarded for it.
In the recent times, the pendulum is shifting to the salvation of dividends with benchmark 10-year U.S. Treasury yields near 17-month lows.
From in.news.yahoo.com:
In the first half of this year, there was a net inflow of $194.4 million for income-producing equity mutual funds following three years of outflows, according to Lipper, a Thomson Reuters company.
The inflow is in contrast to the $18.4 billion net outflow from all U.S. domestic equity funds, according to industry trade group Investment Company Institute.
“Given the heavy outflows from most equity fund classifications this year, positive flows into equity income speaks to investors’ desire for increasingly elusive income,” said Jeff Tjornehoj, U.S. and Canada research manager at Lipper.
The bet is working out so far this year.
The S&P Dividend Aristocrats index, which tracks S&P 500 companies that have boosted dividends for 25 straight years, has outperformed the S&P by roughly 4.5 percent year-to-date.
Since 1926, dividends have accounted for one-third of all total equity returns.
Daniel Peris, portfolio manager of the Federated Strategic Value Dividend Fund in Pittsburgh, said a lot of interest can be seen for dividend-paying stocks as they meet a real near-term need for income.
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